VLC - snapshots in png

I'm having this problem where whenever I try and save my caps in png instead of jpg to make gifs, the video goes slower and the caps aren't taken as quickly - no matter how much I lower the settings to how many caps should be taken.

I don't understand why this is happening and it's really frustrating.  Can anyone help me?  I have a mac too and I'm currently using version 2.0.1 of VLC.

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