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A wide range of combination decks made by Panasonic, LG, Sony, JVC and others are capable of dubbing videotaped recordings to DVDs. They're available online (search "DVD/VCR") and in the well-known electronics stores, and many warehouse clubs are known to carry a model or two at least occasionally.
Some decks don't have built-in tuners, which is fine as long as your parents have cable/satellite service, or have no interest in recording TV shows off the air. If they rely on over-the-air broadcasts and wish to record shows, though, look for a deck with a built-in
DTV (aka "
ATSC") tuner. This would allow them to record one show while watching another on the TV, for example.