I noticed that when BitVice is encoding still frames, that the bit rate gauge drops way down below my target rate. Does that mean the stills will have lower quality?
No, not at all. As a true variable bit rate encoder, BitVice can deliver high quality while giving some frames 50% less than your target rate. Frames with little or no motion and/or little complexity do not need the same amount of data as fast moving complex frames, so when the easier frames get only the bits they need, the complex frames can get even more than your target rate (maybe 50% above it).