Answer:
Using a Dazzle is a cheap, easy way to do it, a lot of people use Dazzle's for game recording. You basically use splitters so you can record the game while you're playing it. And you just plug the Dazzle via the USB into your computer, and use software to save it to your hard drive. The sound on this video is a bit annoying, and it may seem confusing, but it's not. http://www.youtube.com/watch?v=P09fcnKxQiE
If you want to record in HD, you're going to be spending a pretty penny. HD Capture cards run around $200 and up, like this one here: http://www.dvwarehouse.com/Blackmagic-Intensity-Pro-p-33473.html Plus recording in HD is going to take up a hefty amount of storage, so you'll have to buy a good sized hard drive, unless you already have one, and you'll need to have a motherboard with PCI-E slots.

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