I just bought a Belkin "USB Grabber" (http://tinyurl.com/2w7lrd).
The yellow video cable plugs into the USB Grabber which then plugs into the laptop at one end (via a USB cable), the other end then plugs into the Television (Sanyo 68cm Flatscreen CRT) through a S-Video cable.
The problem I am having is that the xbox doesn't show up on the TV, so I can't see what I am playing, which, you can imagine, is a problem.
I go through each TV channel and the two AV stations but nothing comes up.
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Flick the switch on the av cable on the back of the xbox360 from hdtv to tv ... then connect only to tv and change tv to av channel ... once on tv screen ... your up for the next step (capture to pc) .
Get the above setup first .
Depending on outputs , either tv or via vcr .
A: Video out gose to video in on capture device .
B: Audio gose to linein (or mic input for laptop ... place tape over internal mic to suppress background noise)
You'll need a Y cable to convert rca to stereo headphone jack , as mentioned :
Capture software used must be :
A: Set to VTR or composite input only
B: Set to audio input device used ... either linein or mic (laptop) ... enter audio properties to enable device option .
The messy way is :
Xbox360 > pc capture / on sceen display > to tv , via tv out on graphics card .
Not funny , and just a bad method to use .