VirtualDub Setup
Begin by running VirtualDub. Click on File -> Capture AVI to enter the video capture mode. It's okay if some dialog boxes appear because we haven't configured VirtualDub yet. The boxes may tell you that you need to select your capture device, or they might provide you some specific information about your capture device. Just hit the OK button(s) to remove the dialog boxes.
Once you are in capture mode, you should see a screen similar to this:

The first thing you should do is make sure your capture device is recognized by VirtualDub. You can test this by going to the Video menu and checking to see if your capture device is selected at the bottom of the menu:

If the name of your device doesn't have a check mark next to it, select it. If your device isn't in the list or you can't select it, there may be a problem with the installation of your capture device. You can post a detailed question in the Message Boards if you need assistance.
The next step is to go to Video -> Format. It is here that you will select the resolution and color mode for your capture device. For the color mode, select YUY2. For the resolution, select 320 x 240. (Note: if you are using a PAL/SECAM video system, select 352 x 288 or 384 x 288 instead.) If you are using a WinTV capture card, here is what the settings look like:
After you have set the format, you will move on to the Video -> Source dialog box. Right now, you can ignore most of the controls, but you should set your video source and video standard to the appropriate formats. Here is what the screen should look like if you are using a WinTV card, a composite video cable connected to a VCR, and the NTSC standard:

Next, you may or may not have the option of choosing Video -> Display. I don't have this this option, but I believe it controls the closed captioning support. Turn this off if you can.
Now you should go to Capture -> Preferences. There you should set your default capture device to the capture device you will be using. Then you should check all the "Save..." boxes. Finally, select your capture device in the Per-driver settings and select no initial display mode. Here is what it should look like:

Now you are ready to move on to the Video Tuning section.