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<del>The video will record to MPEG format</del> by default and the video file created in My Documents\VLC RecordThe video will record <del>to MPEG format by default</del> and the video file created in My Documents\VLC Record . In Windows 7 this file is located in C:\Users\username\AppData\Roaming\vlc . ===Capture vs Record===VLC doesn't specialize in encoding, but is capable at a basic level. Use of the term "record" is not clear because record can mean "capture" or "encode." Using the record button does a capture. However, there is also a way to choose a codec and reencode the video stream.In VLC look under the MEDIA menu for CONVERT / SAVE or use (CTRL-R) where you can select the video file source and select the codec for Destination. When doing this you are NOT recording while you view the video. This causes VLC to run the encoder creating a new video stream at the fastest speed the encoder can process the video stream. It is also lossy. Each time you do this there is quality loss as a result of re-encoding. Remember, you can't ever "add" quality no matter what format you choose, you can only minimize the quality loss depending on output format and bitrate.In Windows 7 this file is located in C:\Users\username\AppData\Roaming\vlc.