Virtualdub filters For 8mm Film That Was Captured On Vhs

I have used VD in the past.

I need advice on 2 aspects-
1. What filters to use to get the best results for 8mm film that was captured on VHS in order to convert to digital. The original films have been destroyed.
2. How to install filters with version 1.9.11.0

1. Filters for 8mm film on VHS

I live in South Africa and we use the PAL system. I am busy capturing my VHS videos in AVI using VD.
The video of the 8mm film was recorded by displaying it against a wall and capturing it with a JVC-C camcorder.
I use a Super VHS recorder, although the cassettes are of the VHS format, to play the videos. I use a JVC HR-S8960 which has a Time Base Corrector with Digital Noise Reduction.
During a previous effort to convert the same films, I used the following settings:
Deflicker;
Level 20-235;
DNR 8;
2D cleaner 8;
Hue 1.41;
Sharpen 10.
The results were pretty average. I suppose if you start with a bad product, you cannot really expect miracles!
I have read that SpotRemover is a good filter to use. Any other ideas? I have cropped the original video on VD.
This is a very short clip. It is in AVI, but I converted it to mpeg 2 to post a clip. It is interlaced.



2. How to install filters with version 1.9.11.0
If I download VD 1.9.11.0, it would download as a Winrar file. The default folder to extract to, is ...AppData\Local\temp\... If I copy that folder to Program Files, I lose the empty plug-in folder. ( I have up to now, used the VirtualDub.exe link to start VD.)
Should I install VD from VirtualDub.exe or what method should I use?

Thanks for any advice.