The Honestech VHS to DVD Deluxe doesn't allow you to cut out a scene from a video. You can only split a video in two parts using icon and add an effect between these two segments. Navigate to Start > All Programs > honestech VHS to DVD and open the user guide for further information.
In order to cut out a scene from a video/movie, I suggest you try a utility from Software Informer database. Many of these applications are free of charge and easy to install and use.