If I have correctly figured out which you mean, the specs say it captures at "up to" 720x480. In the software that came with it, make sure you have it set to the maximum capture resolution, and then set the software to fullscreen instead of windowed mode. Both of those will be in the capture software somewhere. Since it doesn't have audio capture, you need to run a stereo cable from the audio out of the PS3 to the line in on the laptop. If your laptop doesn't have an audio line in, you'll need a separate set of speakers for the audio.