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VLC can stream using HTTP, MMS, UDP (udp doesn't work for me),RTP and Icecast. There are several transcoding profiles for TS,OGG,mp4,ASF

what are the best methods to use for best compression and good video quality?

i want it to take a bandwidth of around 450k/s

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I'd recommend MP4 for a great quality to compression ratio. Even YouTube recommends it as the format of choice for uploading videos, and for good reason - the amount of bandwidth they use each day is ridiculous, they want to maintain quality videos for users but use less bandwidth, hence why MP4 is a great candidate due to it's compression ratio.

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