The VideoLAN Forums

Regarding deinterlacing, I would advise you to leave it to the client since it can save up on the server's CPU usage

I need to live stream a from a computer's webcam to a server where i again use VLC to live stream it to other computers.. What is the best way to do it? I tried Icecast but it doesn't work as expected.

This could be due to cache issues. Did you try changing the cache value?