Screen Recording Transcoded to H.264 Appears Jumpy

[allenrabin]

I am trying to record a screencast using VLC, but running into a problem when live-transcoding it to H.264. My settings are as follows:

Media Resource Locator: screen://
Frame rate: 15 frames/sec
Encapsulation method: MPEG 4
Transcoding codec: h264
Bitrate: 4000 kb/s
Scale: 0.75

The resulting video has a very weird behavior -- it appears as if it jumps forward and back every few frames. So for example, if the screen recording is of text being typed on screen, it instead looks as if the text is being typed and erased, typed a little more then erased, and so on.

Does anyone know what causes this jumpiness? I've tried different bitrates / framerates, but to no avail. I had success recording the video to AVI with DIV3 codec instead, but for my needs, I require the h264 encoding.

Thanks!