Recommended codec is x264vfw, available at x264vfw.sourceforge.net. Install 64-bit version in case you use 64-bit version of Room Arranger too. You can also install both 32-bit and 64-bit version together on your computer.
It is important to change the default settings of the x264 codec. Run “Configure x264vfw” or “Configure x264vfw64” (i.e. 32 or 64-bit) from Start menu and check Zero Latency!
You can also change the VFW FourCC to x264.