I don't think Electrode and bunker are using those settings to record, but are probably using those to compress after the recording.
I record 320x240 1100 kbps xvid, highest quality that my CPU can handle with no dropped frames, and I use
ShowShifter which I have set to automatically recompress the audio to lame mp3, which basically cuts file size in half. The quality is great, and I don't have to do any of the work. If you have a lot of hard drive space, a high quality codec like mjpeg would be perfect.