Well, this is an old thread, but thought I ought to share how I felt about this purchase.
The quality seems good. I'm not an expert on videos, so I don't know if my laptop was properly recording it in the quality I set it to, but below are some of my recorded footage. It works for the PS3, and the thing displays to the TV in full HD and no lag. The "hot button" they have might sound gimmicky at first, but it's actually really handy if you use it like I do, where you start recording at the beginning of an online match, stop at the end of it, and rinse and repeat.
The main drawbacks are that you can't record in game online chat. Apparently you technically can, but you need to do a work around. The other drawback is that you still need to worry about your PC specs if you want to do really high quality video. The top most video is what LGP claims you can record with its PC-Free mode.
"PC-Free" mode:
My footage:
