I have been searching for essentially the same thing only converting the video from h264 to mpg2 and stretching the aspect ratio vertically from 16:9 to 4:3.
I currently have a VLC (1.0.2) server streaming 36 channels for an IPTV provider, can you please clarify what you are wanting to do so I can help advise? Would be willing to give you scripts, etc that I have built to do this.
I am going to assume that by UDP video you are referring to UDP Streams. I do not know if you can do this on just any PC. I have a server with a Xeon Quad Core chip in it and just streaming out content via VLC to our IPTV network, I am able to pump content for 36 local channels out and the system ba...