Shot in Dallas, Texas, R.O.T.O.R. (1989) is a Robocop/Terminator clone that - from all reports - is quite enjoyable. (Full Disclosure: I've yet to see it, which is a shame given that I currently live in Dallas.) But you probably don't need me to tell you that the film you sketched out in your mind after seeing this VHS cover art is probably significantly better than the actual film itself. I mean, come on! That is a seriously glorious piece of art.
Oh... and since I know you were wondering, R.O.T.O.R. stands for Robotic Officer Tactical Operation Research. Cue the "the more you know" jingle.