Complex sentence: He had originally suggested the song as a good one for collaborator Stephen Bishop to record, with Collins producing, but decided to record it himself when he took a starring role in the film "Buster", which had a 1960s setting.
Split into simpler sentences: He had originally suggested the song as a good one for collaborator Stephen Bishop to record, with Collins producing. He later decided to record it himself when he took the starring role in the film, which had a 1960s setting.