Let me help you out here buddy you want a external(meaning USB). Its about 1 inch long and it hides on the back of the computer.
The other option is a software you can by plenty of these at COMP USA
Internet Conversation Logging screenshot - Log both sides of all chat conversations for AOL/ICQ/MSN/AIM Instant Messengers, and view them in real time, as they are happening!
Window Activity Logging screenshot - Capture information on every window interacted with.
Application Activity Logging screenshot - Track every application/executable that was executed and interacted with.
Clipboard Activity Logging screenshot - Capture every text and image item that was csent to the clipboard on the remote machine.
Keystroke Monitoring screenshot - Track all keystrokes pressed [including hidden system keys!] and which windows they were pressed in. Keystrokes can also be passed through a formatter for easy viewing/exporting.
Websites Activity Logging screenshot - Log all websites that were accessed on the remote machine.