Just plug in each end of the cables to the corresponding colours of the Dazzle Capture Card and your TV's A/V Out port. You will be needing a Male to Male Composite A/V cable. Install this before installing Virtualdub.
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There are other programs which you may prefer however, such as sony vegas, but I will be explaining how to use virtualdub just for simplicity. This software is great and does pretty much everything you need when it comes to encoding. I will suggest virtualdub (which can be downloaded here).