Reduce TV channels high bit-rate live video stream to lower?

[Vaganza]

Is it possible to reduce / filtrate an incoming live high bit-rate TV channels video stream (2.2 Mb)
to a lower one for a slow computer ?
I’ve been reading about streaming on the Documentation pages, as there is a tab named network under “Convert/Save”. Perhaps it is possible to stream to either another instance of VLC or Media Player on my own computer ?
Hoping you experts can help me quicker.
I’ve tried lowering screen resolution to 340 x 240 which would work better with my Intel III (551 Mhz),
256 RAM, Win Xp pro.
I’d happily post the http:// URL stream as long as I know it’s okay, in the mean time,
the video codec is mpgv res.:720x576 original ID: 901 frame rate 25, audio mpga 480000 Hz original ID: 902 192 kb.
Or is there some app. that can reduce the stream already on the incoming ?

I wonder if this was addressed under Automatic Display setting changes depending on file played and VLC as a streaming server and client although I don’t know how to use the answers.