Actually, with a connection to your computer you want a 0db pass-thru of audio to the computer with all audio manipulated by the PC.
This means you want fixed line-level output - which is....
VCR 2 OUT
See how there are two outputs in the line of audio and video analog inputs? One is the audio and video output for VCR 1, which you may have hooked up already. The other is for VCR 2. Go ahead and use the one for VCR 2 (if it isn't in use already). That will take the audio coming into the phono input of your receiver and port it at a proper recording line level, directly to your computer for recording.
There is also a perfectly good analog, line level, output right next to the last coaxial digital audio input where is says CD/R-MD OUTPUT - two red & white jacks. Perfect for recording!
Line level confused me for years.
Phono level is a low voltage input that I don't quite get perfectly, except it needs to be amplified properly to get to line level.
Microphone Level is different than line level as well.
Line Level is pretty much the defacto-standard that audio gear uses. So, anytime you see a normal red & white audio input or ouptut on a receiver, VCR, DVD player, camcorder, etc. that will be line level.
Unless I'm wrong.