Make VLC act like a capture device?

[Lord.Quackstar]

So long story short the program that I use to stream to ustream.tv has crappy video controls, and since this stream is nothing but serving up saved video's, this is important. I was hoping to use VLC to handle the video and output it to the streaming program.

I was hoping there was a streaming option but there's not one, not surprisingly. Is there a hidden option? If this is not capable in VLC, then is there another program that will do this?

Note: The streaming program does not accept stream urls.