Since this is asked every so often, I decided to just make a main topic on it telling you what they are and what you need
First you will need the capture card. A capture card is a device allowing you to attach your PC to your TV ,DVD Player, VCR, or Gaming Console. This lets you watch or record directly to your PC.
Here are a few so you get the idea
http://www.bestbuy.com/site/olspage.jsp?skuId=6742297&type=product&id=1091099665361
http://www.bestbuy.com/site/olspage.jsp?skuId=6872565&type=product&id=1095941349358
http://www.bestbuy.com/site/olspage.jsp?skuId=7794755&type=product&id=1142291505850
Next you will need an Gaming S-Video Cord. The S-Video Cord lets you plug your system into the capture card and also gives it better looking quality.
Here are some options on different Gaming S-Video Cords:
http://www.bestbuy.com/site/olspage.jsp?skuId=6786221&type=product&id=1089890861778
http://www.bestbuy.com/site/olspage.jsp?skuId=7308656&type=product&id=1126592233458
Now all you need is a movie/video making program. There are many options you have here. Best thing to do is test a few and see which one you like and go from there.
Here are some programs you could use:
Windows Movie Maker - if you have Windows you should already have it but its a quality killer
Video Edit Magic - you'll have to find a site or person to get this from but really good program with good editting options and exellent quality
Also some Capture Cards come with there own programs so check those out.
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