1) http://www.youtube.com/watch?v=ChyM0J4ojkY
2) http://www.youtube.com/watch?v=aimK8_zeZpw&NR=1

Once again i was fueled by these videos, classical finger picking styles!

I can get the melody of the song by ear, maybe even find chords on internet that acompanies this. With these given, how do I tab what they're playing by ear?I want to know the theory behind this,infact i don't even know what that way of playing is called.....

Basically from what I know:

-You find the melody of the song
-While accompanied by another note that makes a harmony? [Sorry suck with terms]
I don't know anything about tabbing them by ear but if you get the tabs for the first video PM me because I want to learn it. lol
I would but I come all the way to ultimate-guitar in attempt to understand how these kinds of playing works~
Find the key. Find the scale(s) used. Assume it's diatonic and try to find the chords which are used. If it's not diatonic, or it's modal, figure out the mode, etc. A knowledge of music theory will help you greatly. Also, do some ear training.

musictheory.net -> trainers, ear training.
so you meant finding the chords as in... say this random song i clicked:

Verse 1:
C#m A B
I know that it won't be the same tonight

In "I know that it wont .." would be 5 words,say its in 5 different melody, I would pick the diatonic chord of C#m ? and find its mode as well. And choose the note that accompany it?

Ill look more into it. Thanks!