You can pick up some cheap-o S-video to composite connectors (passive) to fix this. That's what I've done with my system. They work acceptably well. You'll have to look pretty hard to find them for less than $20, but I think accessories4less has them for a reasonable price. Also try cablesamerica. I wouldn't bother with the $80+ active adapters. It's just a VCR, after all...

I am the Doctor, and THIS... is my SPOON!