Under "Options" you will find 3 subcategories, which will bring you to the settingdialogs.
With "Video Format" you can edit the size of the capture pictures (i.e. 320x240) and also the colorformat (i.e. RGB24).
If you are having more than one video source, you can select your actual source in the "Videosource" menu.
"Capture Settings" leads you to the settings for the recording, there you can also choose, which codec you want to use (MPEG-1, MPEG-2)
Further settings are listed under "Advanced Settings".