In Step 4, assuming everything looks and sounds right, you can hit the big red record button and begin your video transfer. You may want to rewind your tape to the beginning before hitting record.
Also notice that there's a check box for automatically stopping the recording at the estimated time you set in Step 1. This feature will allow you to let the recording run in the background without having to babysit the process. If the recording runs a little long, you can always trim off the extra when you edit it in the next step.