Originally asked here but I edited that to move this question as a different one on suggestion by a fellow member.

I read that I should have a Core2Duo 2.2Ghz for 720p but I have a 2.0Ghz one, would it be possible for me to first record it and then encode it after recording if my processor really start giving issue when doing on-the-fly encoding?

I also have a ATI HD 4850 512MB card, if it can help in encoding on-the-fly or is there a chance that my graphics card alone can handle it and those specs were just for a system without a graphics card? I believe so.

Also, I got no worries in dealing with console, if I have to do some of the things above in terminal.

Other possible significant details: I have a dual screen setup 29" (1360X768) & 22" (1680X1050) which might be using some good power from GPU and I have 2GB DDR2 800Mhz RAM.