What is the best way to record video from my X-box 360?

So I'm really into youtube right now and I have a channel right now for just me with videos filmed with my iPhone. It actually works very well. The editing takes seconds for very awesome looking effects and everything. It takes a couple hours to take an idea of mine, film it, edit, then post it to Youtube. I have been working on a script for a year or two now on a (Machinima) if you don't know what that is then go to www.roosterteeth.com and find Red Vs Blue. My story is not a copy of that in any way, the ideas are very different and unrelated but i don't know how to film it. I heard something about a capture card? Some editing software? Something. But I really just want to find the best, cheapest, easiest way to record videos like that. Including the In-game audio. Doesn't have to include our voices. I have iMovie for that to add both audio and video together. So i have a computer, an iPhone, a Tv, an X-box360, and one headset and some friends that have the same. What do i have to buy? What is the simplest why?

WATCH MY VIDEO
http://forum.teamxbox.com/showthread.php?t=554857

Get a capture card. You can buy a cheaper one, such as a 'dazzle', or a more expensive one, such as a 'HD PVR'. You can easily record straight to your computer, use your favorite video editing software to edit them and bam. Done.

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