VLC Converting files not compatible with iTunes

[skidoosh]

I am using VLC 1.0.0 to record old VHS videos onto my computer and I would like a format that is capable of working in iTunes and my iPod without having to reconvert after I record it. Sadly, I cannot seem to get it to work.

The path I use is: [Media] > [Convert / Save…] > [Capture Device (Tab)] > [Convert / Save]

The settings I tried using were:
For Encapsulation I tried MPEG-TS, MPEG-PS, and MP4/MOV
For Video codec I tried both MPEG-4 and H-264 all at 512 kb/s
For Audio codec I tried MPEG 4 Audio ( AAC ) at 128 kb/s with 2 channels
I have “Dump raw input” checked and I tried it with and without Deinterlace

(I am using Windows 7, VLC 1.0.0, and iTunes 8.2.0.23)

Out of all the files I have created with these various settings, none will open in iTunes/QuickTime. I cannot figure out what I am doing wrong. I can play them fine through VLC and Windows Media Player. I have the most recent version of iTunes and I thought that MP4 or MOV would be compatible file formats for it but I am doing something wrong. What can I do to fix this?

[Jean-Baptiste Kempf]

"I have “Dump raw input” checked"

No.

[skidoosh]

What exactly is dump raw input? I was able to import into iTunes once I unchecked it but my videos all look like this:


And when I have Dump raw input checked they record normally (but won't import to iTunes.)