At the bottom of the property page, one can tick a checkbox in order to use the standard Microsoft H.264 decoder that comes stock with Windows 7. If the box is unchecked, the VPP decoder will be used, which has a custom media type. Figure 2 shows a graph in which the stock MS H.264 decoder is used to decode the video.
Alternatively, the frame bit limit can be set by setting Mode of Operation equal to 1 which effectively limits the bitrate of the media stream. The frame bit limit is, as the name suggests, measured in bits per frame. That means that to achieve a rate of 128 kb/s with a source video of 10 frames a second, one would need to set the frame bit limit to 12,8 * 1024 = 13107 bits per frame. In a live media pipeline, the VPP Framerate estimator filter may be useful to measure the approximate framerate of the video source.
The other option of interest is the I-frame Period which creates periodic IDR-frames i.e. every n-th frame, will be encoded as an IDR frame.
All parameters are programmatically settable by using the COM ISettingsInterface which all all/most of the VPP DirectShow filters inherit, but that is a post for another day...
P.S. The Notify on I-frame and Prepend parameter sets are no longer used and will be removed in the next release of the software.