What Recording Setup Would You Recommend?

Me and the missus thought it would be a good idea to start recording our antics in Halo matchmaking but with so many capture equipment out there, we would like to see some recommendations and how you have it set up.

In short, what we are looking for is a device that can not only record our gameplay, but party chat as well. We did entertain the idea of having a couple of go-pros but that would only work for us and if a third or fourth person is in the party chat with us, the conversation would seem very odd to a person who isn’t us viewing the video.