So US Y/C capable player is clearly a best choise.
No.
CVBS is the best choice. I've played around a lot with digitizing video from analog TV, VCRs etc., and S-Video (Y/C) is not really recommendable.
On consumer devices (TVs, VCRs), S-Video is just generated by separating the CVBS signal, which will then be combined again in the reciving device to CVBS. Makes no sense and creates phase errors and other problems.
S-Video is brilliant when generated at the source (eg, Camcorder), and that's what it was created for.
There used to be plenty of CVBS/Audio USB sticks on the market at cheap prices, see what you can find. The sticks are not the issue (they all work the same, and probably use the same chipset), but the accompanying software is often not very good. You'll need to read some old reviews.