Here's a guide to capturing reasonable quality video from your Wii (or other source) for under $10.

I bought a $6 EasyCAP USB Capture Card from ebay. It took a bit of setting up, but I did get it working and I'm relatively happy with the results. I'm using a Dell mini 10v so you don't need a lot of computing power! I'm using Win 7 32-bit (haven't tested on any other OS).

Installing drivers:

• Download and extract DC60 Drivers
  ---> http://www.mediafire.com/file/ry4sp31h4bprsho/EasyCAP_DC60.zip (set 1 - try me first)
  ---> http://www.mediafire.com/file/xijg9yu8wigbz1p/STK1160%20ATV%20BDA%20-%20EasyCAP%20D60%20Drivers.zip (set 2 - try me second)
• Plug the EasyCAP into a USB port
• Windows will probably find a couple of drivers, but miss a couple.
• Go to Device Manager
• Scroll down to Sound, video and game controllers
• USB 2.0 Video Capture Controller -> right click update driver -> Point at DC60 Drivers\EasyCAP_DC60\Setup\STK1150.inf (from the zip file above)
• STK1160 ATV BDA -> right click update driver -> Point at same location

Setting up capture software:

• Download and install VirtualDub (Google)
• Set your Wii to PAL 50Hz (may not be essential, but seemed to be for me)
• Plug the audio and vieo cables from the Wii into the EasyCAP
• Load VirtualDub
• File -> Capture AVI
• Device -> USB2.0 xxx / Syntek STK1150
• Audio -> USB Device
• Video -> capture Fileter -> PAL B
• Video -> Cropping (set offsets to remove black borders)
• Bottom right of screen set -> 25.0 fps
• Video -> Set custom format -> 720 x 576 x 24 bit (or YUY2)
• Video -> Filter Chain -> Filter List -> Add
  -> brightness contrast (bright -12%, cont 112%)
  -> resize
  ---> AR -> Compute height from ratio -> 16 x 9
  ---> New size -> 512 x 288 (or 1024 x 576)
  -> sharpen by 32
  
• Video -> Filter Chain -> Enable
• [Optional]File -> Exit Capture Mode | File -> Save Processing Settings | File -> Capture AVI

Capturing Video:

• File -> set capture file...
• Capture -> Capture Video
• Capture -> Stop Capture
• I then use AnyVideoConverter to convert to xvid. You could do this directly with VirtualDub if you had a faster PC / better capture card

Sources:
Trial and error and...
http://fpv-community.com/forum/showthread.php?tid=197&pid=1596#pid1596
http://www.nextgenupdate.com/forums/computer-lounge/91570-easycap-drivers-into-windows-7-32-64bit.html

Image:
http://img863.imageshack.us/i/3688c4044eb7b73d0cb04f6.jpg/
It won't embed!

Results (sound is a bit laggy ):


If anyone tried this and has corrections/additions, please post them here.

i use a easycap its deffo not the best capture device out there but it works quite good

if i just want to view the wii like if the kids are watching tv i use VirtualDub
but to do my recording i use Ulead VideoStudio SE DVD which came with my easycap then convert the video with Aimersoft Video Converter Ultimate

Myeasycap didn't come with ulead

Is it any good? Maybe I should "source" it

its not great but it works well
also it makes really big avi files like a theme vid is about 1 to 2 mins that will be about 2 or 3 gb