Alright so, what I've found out I can do is this: change the mic settings for the output to be on the tv, turn down the master volume, mute the tv, hook up headphones to my laptop that is recording through the gamecap, then record my voice through audacity.
Only sucky part about that is that I will have to go through the 2 second lag from the tv to the laptop that roxio created. So I won't know immediately when someone is shooting me, unless they hit me. Lol.
Now, I could get headphones hooked up to the tv but then I have to span the gap of the living room some how.