You can do this with a tower but there is a more effective way to do it if you don't need to capture and ill be posting that instructable soon.
Also im going to post an instructable on how to do this with s- video because it gives you a better video quality.
video instructions
Demo
Please rate if you like this instructable. If there's something wrong or its not working leave a comment.
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-josh
The capture software should be able to route te sound over your sound card.
I do this all the time with my tv tuner card.
(You don't need a capture specific card, any tv tuner that accepts RCA/svideo input should do the job.)
Also, I've found the EasyCap on a reliable webstore I use. They're legit, if you're worried about using ebay and want an alternative. That, or any tv tuner card with RCA/svideo input options, as I said.
I tried inputting the code for the software when I got the trial, and it didn't work.
I downloaded drivers from this website : http://www.digital-devices.co.uk/downloads.php
I got STK1160 and I tried using a program called AMCAP to play my 360. When I turned it on, the picture was blank. However, I turned my headphones on and I could hear the sounds the Xbox 360 dashboard makes. Really don't know what to do now.
this
and
this
If you really want to be hardcore, check to see if your capture card will work with DScaler, an excellent capture card display program.