ok i got it to work and im now encoding the video in Vdub but are you suppose to see the video like in flask mpeg? i selected Show Input video and Show Output Video and Vdub is just a big gray thing check the picture below to see what im talking about
This is perfectly normal. When you encode with gknot, it uses fast recompression in virtualdub. Which means that the source is not converted from the yuv colorspace to rgb. This means that you can't view the movie durring the conversion.