Why dont you use some ordinary software like Ulead Cool Video maker or Movie Maker to add text or styles to your captured video then create a MPEG file then convert it into a MPEG4 file. What you ultimately need as far as i understood is a MPEG4 file so why need a software convert.
Does anyone know of a good software encoder capable of encoding a captured video in MPEG4 format
User data can be added into the encoded stream. ie the MPEG4 output will contain user data inside.