Most VHS players have 'phono' outputs on them. So you'd need a phono to 3.5mm lead (from Maplin or, cheaper, off the web) to get the output from your VHS player into the 'audio input' socket of your computer.
Then you'd need some software to record an audio file. Windows has its own sound recorder (it's under 'Accessories') but most people would probably prefer to use Audacity:
http://audacity.sourceforge.net/
(to export an MP3 file you'll also need this plugin for it:
http://manual.audacityteam.org/o/man/faq_installation_and_plug_ins.html#lame ).
Once you've got an audio file onto your PC you need to insert a blank CD-R disc into the drive and use your burning software to create an audio CD.