Quick questions about videolan

[the4runner]

Hey all,

I'm a newbie to this forum.
Just became a member, and I tried browsing thru some previous topics but couldnt find anything relevant to what I was looking.

I went over a little documentation of VLC and I think its the software I need for my project. Just had a couple of questions though before I dig deeper.

My project is based on overlay networks. I plan to demonstrate that live video can be sent across overlay networks too.
The basic setup is that there is this server to which clients are all connected in a sort of an application level tree (the overlay network).
now i would like to use VLC to produce a stream of video which I could use my tree to transport to each client and feed it to the VLC player on the other end.

Is this possible or am I just being stupid and missing something??

Any help would be greatly appreciated.

Also, does VLC server recognize a logitech webcam for receiving the raw video input?

Thanks!!