[damant]

here are my settings:
buffer manual 4sec.
unchecked optimization
unchecked encoding
video 350
fps full rate
i-frame 30
res. 320 x 240

just remember one thing : make sure you turn off control mode after changing channels or controls ..

under info settings: show statistics..this way you can tell if the frame rate and connection is good... frame rate should be ~29 for decent/smooth pictures.