Step 2: Mod the A/V Cable
This step is so simple it's a wonder Microsoft even thinks they can get away selling an overpriced peripheral when you already have what you need included with the system.
Find the seam on the connector for the A/V cable, wedge the screwdriver in there, twist, and crack that plastic shell open. You'll probably have to do it on both sides of the connector, no big deal.
Once the shell (and oh, so much empty space inside the plastic that does nothing) is off, use the electrical tape to keep the metal connector attached to the remaining plastic shell. Note, it will work without the tape, but it's probably a good idea to electrically insulate that a bit.