VLC Player Question v.1.01 - Record but convert to another codec?

How can I convert from one video format to another? Some handholding would be very helpful. I have
not seen any help on this with my search on Google except some command line things and I'd rather
setup something in the settings menu if possible instead. Since this version is so new if you know
how, exactly, to convert to the smallest codec for both audio and video, showing how to adjust
quality in your explanation, I think lots of people will be reading your post. (2)

I have the latest VLC player and it's great*

The record function is up front and easy to use. My desire to make snippets of video's is fulfilled
with this feature. I would, however, like to get the copy in a different more compact format if
possible and since previous versions did not implement the copy/record feature so clearly I
was not aware of it until a few weeks ago when I got the latest version.

Looking at previous versions one wouldn't see the record function. There was something called
'copy' but it must have required some setup because I could not make it work on my old version.

So I'm asking now that more people, probably like me, are aware of copying a video easily. How
can I covert from one video format to another?

The current codecs for the video I'm working with now are:
video DX50
audio mpga

I don't know the current 'best' or tightest format for video but I believe mp3 or AC3 is still
the best and smallest codec for encoding audio. It seems that mp3 would be used for
most shared files because most are 2 channel and need to be downloaded to share.
Mp3 lends itself being able to be quickly and easily set to nearly any sampling freq.

*
I was super pleased with 2 features which are on v 1.01.

1. When you change the playback speed the audio is sampled in a way that it's frequency does not
change. While this is not what you expect it does have its value when you must watch a few minutes
of video and audio together. It's also wonderful for studying the brain and alcohol. Why? Some voices
when slowed down sound like drunken speech while others don't. I wonder if there's a correlation between
those people and how they react to alcohol in comparison to people who's voices do sound alcohol affected.
It's an interesting window on a project.

2. When you want to record a section simply press Ctl -R and it copies that section to a new file
named anyway you like but at the least it's got the original name plus the date and time stamped.

3. Not a benefit. CPU usage seems to have doubled or slightly more. Perhaps not. V 0.9x used so
very little CPU power that it was near 0 often. I read 4 up to 9 and 10 occasionally.

As an aside if you have time to answer

The link (1) to a VLC wiki says that mpga is recommended for portability. Does anyone have
a comment as to why this and not mp3 would be recommended for portability?

(1)
http://wiki.videolan.org/Codec

(2)
Many people come in to this forum from Google or other search engines. Not only Fwallet users but
many more read your posts. Dependant on the quality people decide to sign up for the forums or not.
If the quality is thorough and instructive we'll see better quality people sign up. Thanks for doing
your best.

I would think that most people would convert video using a dedicated program, rather than a media player. Try a few of the freebies mentioned in the following article and see which one you prefer:

http://www.techsupportalert.com/best-free-audio-video-format-con...

On the similar note of OP, I have a question on converting PAL VHS tapes to NTSC format and then burning them on DVD. I have some old recording of my kids in PAL VHS format and will like to convert it to digital that I can play here in US.

Tried Google with no luck. Any help will be appreciated.

Thanks,