There is also Guncam Which I think you can try for free. I've used it and found for recording does a great job. If you like it, it cost like 25$ if I remember correctly. Not the greatest editor mind you but you can do basic splicing and get a solid recording done.

The Hauppauge HD-PVR allows you to record up to 1080i resolution from RCA (Yellow - Red - White) as well as Component (Red - Green - Blue - Red - White). I think that would be one of the best choices if you are concerned about resolution. Hauppauge makes cheaper products as well but they only record in 480 resolution. But again that's only if resolution is a concern to you.

As for video editing I would reccommend CineFX I believe right now they removed the download from the website so you can just download it from their SourceForge page.

Camstudio is pretty good.