Kent's comment reminded me: I used a Canon 4200F scanner a few years ago to scan and digitize hundreds of pictures and 35mm negatives. Excellent results. I didn't have 110 negs, but there's a holder for them. I don't know if there's a holder for 126 negs. I guess the VHS to DVD project is solved. An option I used was to play the VHS player into a video card and edit in a movie making program, then burn to dvd. That worked well.
Coincidentally enough, I saw on WRAL this morning that "5 on your Side" is doing a spot on photo scanners. I think they said it was going to play at noon.