You can use any Portable Video Recorder(PVR) device too. I used a Mustek PVR-A1, usually found on Ebay for less than $100, to record from my little spy camera. There's also a PVR called the Neuros Recorder 2, it's a bit more expensive but the quality of the picture is a lot better, it records at 640x480 instead of 320x200.
The Mustek PVR-A1 uses an SD card for storage. It hooks up to a PC via USB and saves the movies in ASF format...obviously these can be edited using any simple software designed for the purpose. No need for a capture card when using this setup.
Here's what I used my spy-camera/mustek combo for (in addition to putting it in r/c cars!):
It ain't the best quality, you get what you pay for. But it's still pretty fun to watch!