I'm in need of a software that can stream the images coming from a device over the internet (Windows -> Windows) and play it at the other end. I also need to stream audio from it. I'm currently using skype, but I believe that using a program specifically for that end which I can configure (Quality, ports, perhaps even protocol) will reduce lag and loss of image at the computer that is receiving it. I tried VLC, but it did not work (Tried several protocols, different transcoding methods, etc...). Regardless of the configuration, the video wouldn't show properly at the other computer. I would really appreciate if someone could point me to a good software for achieving that goal, and perhaps even the best way to do it (Best protocol, transcoding, etc). Smoothness and delay reduction takes precedence over quality.
You've said that you tried VLC? Could you specify which options you've tried? I've found VLC to work well for streaming webcam video.
I'd suggest trying mpeg2 video with ogg muxing over HTTP. Also, error messages or failure modes would be useful for understanding why it didn't work.