The process Pete and all go through is probably something like this:
They hear about kids through channels (coaching scuttlebut, friends in HS, etc). They get multiple recommendations. They have an 'office boy' they trust sort through game film and find guys who have physical ability.
They either have cut-ups from the school or the office boy makes cut-ups. They make an assessment of physical ability through the cut-ups (which are supposed to be representative, not exhaustive).
After that, they make contacts with the kid and his coaches (and local coaches) to get a feel for how the kid is as a person.
Based on that they rank the kid vis a vis their needs and either offer a kid or they don't.
Some people like to see people in person, camps, spring practices to make evals as well. That all goes into it. But coaches aren't watching full game film of recruits, that never happens, they wouldn't have time for anything else.