While showing the rstp-stream, we are trying to transcode, and record it to file for later use.
VLC 2.1.1 seems to work when using
vlc rtsp-stream :sout=#transcode{vcodec=mp1v,vb=700,scale=1}:duplicate{dst=display,dst=std{access=file,mux=asf,dst="C:\file.mpg"}}"
This seems to be broken on VLC 2.2.4
Documentation on VLC's wiki seems outdated.