You've a bit of lag there. To me it looks like the pausing you are talking about comes from this lag.
17:04:37: Total frames encoded: 1394, total frames duplicated: 1323 (94.91%)
17:04:37: Number of frames skipped due to encoder lag: 1323 (94.91%)
You've set your preset to slow. This won't help you improve the quality of your local recordings at all, it's just going to save you some space on your hdd. Set it to the default veryfast and see if that fixes your "pausing issues".