The problem is
- a surface is a (performance) thermally constrained system (ie system will throttle performance (CPU, etc) when it gets hot doing computationally demanding work (real-time video encoding)... so it is all about balance, not outright 'best' [the definition of which will vary by person ... sort of like what is best car? ]
Most older VHS tapes are 480i, whereas modern system work at 1080p and higher
- so first, need to confirm where in capture process video conversion from Interlace to Progressive is done
- then beware duplicating audio sources (I tend to disabled Desktop Audio and ONLY use specific audio sources as required
then.,.. after that.. really depends on playback software/device, and the 'best' may vary (and worst case, vary over time... ie what works 'best [for you]' this year may not work out with later OS/firmware/devices [ie new TV/monitors]
- the lower the compression, the more disk space consumed (can get crazy large quickly), but there tends to be 'visually lossless' levels that would be a good starting point. Disk space tends to be cheap (ie HDD for archiving video), so I prefer to err on larger file size... but not all folks are in a position to do that
- the tricky part tends to be whether capturing at source resolution (480) or 'over-sampling' [and this is the part where both 'it depends' and the answer can/will change over time... my recommendation, do a couple of tests, and be okay with whatever the results are and not worry about long-term ('cuz you just won't know)
- and recognize the different playback engines involved [most folks have large TVs that are actually just monitors (no tuning done on monitor) with playback controlled via Roku, Apple TV, Cable box, etc... each one will process your compressed video their own way [oh, and many modern 'TVs' can play a video file on USB stick directly]. And best results usually mean NOT using WiFi for playback
and way look great on your Surface laptop may/may not look great on a large screen
sorry, I'm sure you were looking for more specifics... but 'it depends'
