DVD for me because:
[1] Better quality video + audio
[2] Wide screen (16:9) format, which I love
[3] Fewer problems than VHS (e.g. degrading/stretching tape)
I very rarely record anything. If I do, I tend to capture it on my computer. Otherwise I use my DVD recorder. Unfortunately, this can only capture 1h10m in good quality (longer in a poorer quality - which isn't bad if you watch it on a TV).
My family still uses the VHS recorder to record stuff (rarely, though).
Unfortunately we don't have a HD recording system in South Africa - yet!