To reduce lag, change your CPU preset to superfast or ultrafast.
For improved quality, use the Bicubic or Lanczos filter (Lanczos has better quality but slightly lower performance). Also, for the bitrate, a bitrate of about 5000 should work well. If you want better quality (but higher file size), use CRF with a value of 15.
Also, use the 64-bit version of OBS and update it!
The reason why you are suffering from lag is because your processor just cannot handle encoding that well. Consider upgrading to a quad-core CPU with at least 3.00 GHz.
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