There are a couple of issues here that I really can't read between the lines or assume.
1. Does the capture card work with VLC?
2. Are you able to transcode the saved files using your capture card?
While I believe that any format should be compatible with any container and all containers should be capable of streaming, that's not how it is in the real world. This is why the Wizard was created.
The key issue is:
1. know your compatible formats and containers.
2. Separate transcoding from streaming when you have problems.
3. Know your source file types and the containers so you can make intelligent decisions for quality with relatively low overhead when transcoding files for streaming.
I can not in this space tell you what is ideal in every situation, that is why there are options. At the same time I can not tell you which ones don't work together as some of these were never finished (they do work but perhaps not as expected), so that all the accepted variations for all the various formats and containers would work together.
Hint: mp3 audio is not accepted with any video format in any container, however mpga is accepted for most mpeg formats including mp4v and DivX. MP4a (AAC) audio is accepted with MP4v or h.264 in a MP4 or MOV container as this is a standard QuickTime format. But for streaming MOV is the container of choice.
Reference:
http://wiki.videolan.org/index.php/Transcode