Take your tapes to a video transfer business. They do this every day and can put them on DVD or regular VHS tape for you.
Then sell the camera on Ebay for what you can get for it. No way I'd want to have to deal with the wrong format every time I wanted to video something.
As for buying it under your conditions, I think that was a really smart move. I'm not much on video myself, but I carry at least three cameras with me when I travel.
The very first time I went to Paris, my brand new camera that I bought just for that trip died on me. Fortunaltely I still had my cheapy camera and was able to get some pics.
Eddie