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Capture Cards for Videogames?

Professor SnugglesworthProfessor Snugglesworth Bullied BatRegistered User regular
I've made this thread at least twice in the past, but once again I'm looking into recommendations on a reliant yet affordable capture card, so I may forever preserve those memorable moments, be it single player or multiplayer.

To try and make thing easier, here are some general requirements/expectations I would like to use the card for:

1. Capture footage from Xbox 360 and PS3 games (Wii not necessary, but if it's doable...)

2. Connected through HDMI (that's how the systems are connected to my TV, and that's also how my PC is connected to both my TV and monitor, so I assume this is the easiest option)

3. Output at least up to 720p

4. Can record audio from player chat communications (not required, but nice if it can do it)

I might as well post my current PC specs too, if it helps:
System NameWIN7
System ManufacturerGigabyte Technology Co., Ltd.
System ModelEP35-DS3L
System Typex64-based PC
ProcessorIntel(R) Core(TM)2 Duo CPU E8400 @ 3.00GHz, 3000 Mhz, 2 Core(s), 2 Logical Processor(s)
BIOS Version/DateAward Software International, Inc. F5, 7/16/2008
SMBIOS Version2.4
Windows DirectoryC:\Windows
System DirectoryC:\Windows\system32
Boot Device\Device\HarddiskVolume1
LocaleUnited States
Hardware Abstraction LayerVersion = "6.1.7601.17514"
User NameWin7\Jorge
Time ZoneEastern Daylight Time
Installed Physical Memory (RAM)4.00 GB
Total Physical Memory4.00 GB
Available Physical Memory1.28 GB
Total Virtual Memory8.00 GB
Available Virtual Memory4.71 GB
Page File Space4.00 GB
Page FileC:\pagefile.sys
Radeon HD 5700 Series
Gigabyte Technology EP35-DDS3L

I also have four hard drives, one of them 2 TB, so storage isn't an issue. Anything I save is going to get uploaded to YouTube anyway, so I don't plan to permanently save any of the recordings.

Also, I could use some clarification on how exactly recording game footage works. If I'm using an HDMI connection, how do I connect the capture card to the console while it's also connected to my TV? Does the game display on my TV, PC monitor, or both? What are some other requirements I may not be aware of?

Beyond that, any suggestions on current capable cards would be appreciated. Looking for budget pricing, nothing too fancy as long as it meets my general preferences.

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