I bought this silly thing at a yard sale for $3. Their kids had been using it for video games. I'm guessing I need a composite video cable that connects the Mac's video port to the RCA jacks on the Wonderwall. I connected it with a three lead composite that goes into the Mac's audio port and can hear it. Can I connect it to cable TV also?
Yes, if you want fully accelerated video, you want a cable to go from the video jack to the RCA jacks.
There are USB cables that do this. They aren't really USB cables; they are tiny, primitive video chips with a USB interface (that is, the Mac treats the USB cable like it was a second video card). They aren't accelerated and will give extremely poor results on games.