a) These options determine the quality and size of the file generated from the video capture.
In general, high video quality generates large files. A larger file means that it will require more bandwidth to view (restricting the number of users who can view it while it downloads) and take longer to download. These extra demands can cause considerable problems for the viewer, and result in a negative experience. A trade-off must be made between quality and convenience, because a high quality video that is never seen has little value.

b) For videos of lectures, it is recommended that video quality be set to "VHS quality video", the audio be set to "Voice quality audio", and the bit rate be set to 240Kbps. This will provide a reasonably good quality video that will stream over many broadband Internet connections.
Final file size can be roughly calculated using the bit rate if the length of the video is known. The equation is:

File size (in MB) =
Bit rate (in Kbps) / 8 (bits per Byte) * 60 (seconds per minute) / 1024 (KB per MB) * Length of video (in minutes)

or more simply:

File size (in MB) = Bit rate (in Kbps) * Length of video (in minutes) * 15 / 2048

So, a one-hour long video encoded at 240Kbps will be approximately 105MB.

c) Click the "Next" button to proceed to the next step.