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Too lazy to explain, so I found a website that does it for me.

A Video Capture Card and TV Capture Card allow you to send a Video or TV signal to your Computer. The signal can then be recorded to the Computers Hard Drive with TV or Video Capture Software. There are several different kinds of Capture Cards on the market, with varying functions. This article will focus on what to look for when buying a Capture Card, depending on the use of the card.
What do you plan to capture with your Video or TV Capture Card?
There are many uses for a Video and TV Capture Card. Do you simply want to capture Video from a Camcorder or VHS tape? Or are you interested in a TV Capture Card that will turn your computer into a Digital Video Recorder (DVR), which will allow you to play and pause live TV and make scheduled recordings of TV shows, like a TiVo? Or perhaps you want a card that is designed for video editing? Whatever your need, there's a Capture Card for all of these functions, and some even do them all!
External TV and Video Capture Card
External Video and TV Capture Cards connect to your Computer with a USB 2.0 cable. Known as Break-out Boxes (BoBs), these cards are plug and play devices that require minimal labor for installation. Simply plug in the USB cable and AC power to the device and the USB cable to your PC and you're ready to capture!

* External Capture Card

Internal TV and Video Capture Card
An Internal TV and Video Capture Card requires you to crack open your PCs case and physically install the card. While this requires more labor and some knowledge of computer parts, interal capture cards are typically less expensive than external cards, and usually have more advanced functions.

* Internal Capture Card

What types of inputs and outputs do you need?
Video and TV Capture Cards vary in the inputs and outputs they come with. Some cards capture only with a Firewire input (also known as IEEE 1394 or i.LINK), others capture with only Analog inputs (RCA and S-Video), while still others capture both Digital (Firewire) or Analog signals. Capture Cards that work like DVRs will also capture TV signals with coaxial inputs and include TV outputs.
Bundled Software
Most TV and Video Capture Cards include software that will allow you to capture TV or Video and then burn to either DVD or Video CD. Some software packages are better than others, so pay attention to what software comes with the card before making a purchase.

Thanks bud, but I'm still way in over my head.

Computers confuse me. ;_;

Basically, you buy a card and install it in your computer. That allows you to plug cables in from your console and into the back of the card, using your computer almost as a television. Then, you can use software on the computer to say "Start recording video" as you play. And then you record, and then you save the file.

Okay, okay. Time for easy mode.

You know how there's two major kinds of hard drives, yes? Those being internal (inside the case) and external (outside the case that plugs in via USB).

Well, Capture cards are like that as well. Basically, they're a little... box-thing... with a video input attached. You know, that's the input with the yellow wire, like on an Xbox.

Therefore, you plug your video input into your PC's capture card (either internal or external) and run the included software to capture video files and/or screenshots. Simple as that.

Edit: I should also learn to not leave unfinished posts open for close to half an hour so that venter doesn't beat me to answering.

Thanks guys. : )

What would I do without you?

Although every video card has some sort of output, many newer ones also feature inputs. If you know that yours has inputs, you can probably just use that.

As others pointed out, you can purchase separate internal or external capture cards. If you go to Newegg.com you can find some decent internal cards that will need to be installed. Otherwise, Pinnacle makes some decent external devices that operate via USB.

From there, you will need video-editing software. Once that is finished, convert/save the file in the format you need. One word of caution. Video can take up a lot of hard drive space (1 GB/4 minutes).

I love you.

I refuse to purchase/install Bioshock unless they decide to pack it without DRM.

What's wrong with 2K wanting to protect their profits? 2K Boston (Irrational) are some dedicated developers who are always trying to push gaming into new territory. They deserve to make their money. This isn't like music, where many people try before they buy. 2K already put out the free demo to download. I get the feeling that you might be looking to score yourself a free copy. What other possible reason could you have for being against the DRM?

Nerds hate DRM because of the principal of the thing! Omg Vista will not let you pirate Blu-rays in 2012!!!

I was at a local band's show a few years back. There must have been 40 people singing along to all of the new songs. After one of the songs, the singer stopped to say, "I wonder how so many of you know these songs, seeing that we only sold five copies of the new album at our last show. Looks like most of you are just to f***ing cheap to support local music."

I don't want to hear crap about media-artists having too much money. Piracy may only make a dent in some people's wallets, but it can be devastating to others. Every penny counts, and I am more than willing to lay my money down and support a company like 2K Boston.

Of course, I can't get too high and mighty here, because I also buy and sell a lot of used merchandise. That's more a matter of financial circumstance though. I still buy 'new' when I can afford it, and especially when I truly feel that a person or group deserves the money.

Actually I planned on purchasing the game, and aside from some old ROMs I have never pirated a game. But if I buy the game it is mine and I should be able to do whatever I want with it, period. I shouldn't have to worry about a game installing files and programs to monitor what I do that I cannot easily remove. It's not worth risking system stability and the chance to be affected over playing one game. There are many other ways to crack down on open source than DRM/SecuROM.

Even worse there's a rumor about the game installing rootkits on your computer. Guess I'll have to wait until I can get hold of someone's 360 to play this game.

Rootkits... hmmm. I am learning all sorts of new things today.

2K is denying it, but from what I've read many people are claiming that Vista is detecting rootkits in Bioshock. I'm still not convinced that this is definitely true but I wouldn't be surprised.

What's a rootkit?

A program (or a set of several) that are designed to take control of your computer's OS away from you. There are good kinds and bad kinds of rootkits, but they're usually bad news.