I found out that running this from command-line like:
vlc.exe /-vvv --daemon mms://some.website.com/stream :sout='#transcode{acodec=mpga,vcodec=mpgv,vb=1000,width=704,height=576,ab=192,channels=2}:std{access=http,mux=ts,url=:6789}'");
Gives me blue screens