You cannot hook the PS3 directly to the laptop. What you would need is a video to USB converter box, then plug the video out of the PS3 to the converter box and the USB to the laptop. Doing so will allow the PS3 to show on the laptop, but you'll lose quite a bit of the quality of said video.
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.