I have a situation where I have an RTSP source (an IP camera) and I would like to make a file out of its video feed and have that file perodically updated. This is because it is a file on a website hosted by xampp.

I have discovered that the VLC broadcast function allows me to do this. However, this is the resulting file:

I noticed that I can keep making new files simply by looping it as a playlist.

How can I:

1. Fix this to proper quality? Would lowering the camera's resolution help? Can I force it through x254 conversion?
2. Automate the process so the file is updated AND available to play at any time? Because I notice that capture takes over one minute. I am thinking of having a webpage-file and have VLC make a temp capture file that it then not-transcodes (copies) unto the webpage file.
3. Make this process start with windows startup?