Ok, I can capture video from the TV normally, now anyone have any idea how I'd be able to capture it when I hit input on the TV (games), because it still records the TV screen channel.

In case anyone's wondering I'm using this:

http://www.buy.com/prod/best-data-vc500-on.../209180489.html

Hook that up to your game console instead of your tv tuner. It's not recording what's on the TV, it's just recording what it's plugged into. The TV is just a display, you can't actually record it.

Dumb question but where because I don't see an S video adapter anywhere on a PS2.

You're going to have to plug in the AUX (red white yellow) into the capture card.

Now that's going to leave you without cables to your TV. When you plug in to the capture card, can you play using your computer as a monitor/does it show what it's recording on the computer?