wow that's alot of hammering for no reason.. just ignore that guy Fuzz.. -some people are just trolling along waiting for someone to hurl chunks on.
I can offer something for part of the issue, but since I'm on Win98 the "service" part isn't useful for me.
Also, if I'm not mistaken that "service" part you will only want to issue once when you do the installation. And then any time after that you will just be changing various settings. Isn't that how services work? You install them, then they become like a resident part of the operating system? But, anyway, maybe someone else can shed some more light there for you.
Let me clarify something for you first. You mentioned the concept "listening for a running stream on my laptop".. -and I just wanted to mention that your PC would not be listening to your laptop, and for all practical purposes doesn't even know it exists(figuratively of course). Your PC just listens, period. It will be just waiting for ANYBODY or ANYTHING to stream something to it onto port 1234.
As far as receiving a udp stream it could be like this:
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C:\Program Files\VideoLAN\VLC\vlc.exe --no-video udp://@:1234
the same exact thing would be this and look at the differences:
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C:\Program Files\VideoLAN\VLC\vlc.exe --no-video udp://@localhost:1234
and/or
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C:\Program Files\VideoLAN\VLC\vlc.exe --no-video udp://@127.0.0.1:1234
I see you have this "--no-sout-video" parameter, but I think you would want to run that on the serving machine(this way there is not even any video going out the streaming part, but of course you can still watch it locally as you say). If you don't want to remove the outgoing video from the server then it's fine and the lines above for the client-side will be just what you need as for not showing video, but it's probably a good performance plus to use that parameter on the server, if you think that's relevant.
I've never realized any kind of invisible interface(for example you say not showing any GUI), so I don't know about that, but maybe that's what the service deal is for?
So at least you have that part.. and don't let the command line be confusing or daunting to you, but do realize how even omitting 1 character or similar will have an affect.