The old addage is garbage in, garbage out (especially with VHS tapes)
There's no magic solution. You will have to manually correct the position each frame where the picture jumps.
I've never used it, but wouldn't the Stabilizer component of the Motion Tracker/Stabilizer be of some use here?
Aaron
Or go to a professional video rental house and rent a Time Base Corrector and recapture the footage.
This costs $599, but it looks amazing.
<http://www.elitevideo.com./product.asp?0=209&1=219&3=8>
A $600 video processor is strictly consumer league stuff. And the best signal is can process is S-Video? That's the pinnacle of quality right there. Yeesh!
Some of the color correction on that page is atrocious. They just turn the saturation knob up to 11 and think it looks better because its has *more* color! Oooooh!
Boy, I didn't look into that as intently as you guys, sheesh! You're right. It was just something I stumbled upon.
Caveat emptor indeed!