You have to convert the .vob file to .avi or something similar to get them onto Youtube.
The quality is really good though lol.
For converting, I suggest AutoGK. For splitting the videos, I use SolveigMM Avi Trimmer. To rip the .vob off the DVD, you'll need a computer drive that supports DVD reading and a program like all in one DVD ripper.
Everything I mentioned is freeware btw. Also DVD recorders have *some* lag so that can be a problem. Especially for Melee (for Barlw it's like "**** mistimed Dancing Blade too early" >_>). Plus they're kinda big to carry about, usually very pricey (150+, although I got mine for $100).
Get a Dazzle I guess. I heard it works better/more convenient to upload vids and carry around. Quality seems to not be the greatest but that's manageable considering you're uploading this to Youtube, not Veoh or NicoNico.
Hopefully I was of some help.