Target(Output) Settings:
Size: 320x240 is standard which you are using now. 640x480 is much bigger but sometimes is just not an option due to file size.
Bitrate: Basically a quality setting. You are using 100kbps now. You need to increase this to increase quality. There is also a setting for 1-Pass CBR or 2-Pass VBR, you want 2-Pass VBR, this means it reviews the video first and then encodes it at the best bitrate for each part of the video.
Display Ratio - Double Check this setting for Source and Target. You video looks slightly squished, this could be the cause. 4:3 ratio is for standard TV view, 16:9 ratio is for wide screan only. Be sure you Source and Target are set to the same proper ratio for your video which is most likely 4:3.
Recommendations:
Dial-UP(Similar Settings to what you have now):
Size: 320x240 Bitrate: 100kbps 2-Pass VBR
High Speed:
Size: 320x240 Bitrate: 200-300kbps 2-Pass VBR
Size: 640x480 Bitrate: 300-500kbps 2-Pass VBR
Display Ratio: 4:3
Other Options:
If that doesn't help, you can save the video to uncompressed avi which should be a good high quality 200MB to 400MB file. Then you can use Microsofts free "Windows Media Encoder" to convert from Uncompressed AVI to WMV file. This is my preferred method but the Canopus can almost compete if the settings are tweaked.
Let me know if you have any other questions regarding the settings for canopus or with Windows Media Encoder Option.
I hope that helps without confusing things too much.
Happy Enoding,
Bud E