AVI -> MPEG2 -> AVI Conversion losses

[sgr]

Hello

I have the impression (please correct me if I am wrong) that the cheapest way to edit video is to do it in "raw" video rather than MPEG2 video.
Therfore I think of capturing my s-vhs recordings to AVI and convert them to MPEG2 in order to archive the video in high quality.
In the future I will pick up the unedited MPEG2 video, convert it back to AVI format, edit it and produce DVDs.

(I am in the process of finding equipment and method for a high quality archiving method and have not bought any equipment yet.)

Will the above mentioned method result in high conversion losses when converting AVI-files to MPEG2 format and back to AVI again (and converting to MPEG2 after editing)?

Please suggest better methods for high quality archiving for future editing.
My priorities are

All advices are appreciated

[fyreboltx2]

yes, whenever you change the file format your losing quality. if you want to edit it then capture it in avi, since mpeg is harder to edit.
if you want it in mpeg2, then capture it in mpeg 2.

id recommend capturing it in avi, editing it, and then convert to mpeg2. to lost as little quality as possible.