Actually, it's incredibly easy, and does not require a shoutcast server at all
Also, you can have half decent image size too...
1. On the webcam PC fire up VLC and "Open Capture Device"
2. Click "Refresh List" for both Video src and Audio srv
3. Select the model of your webcam in the Video src, and select None in the Audio src
4. Check "Stream/Save" and click "Settings"
5. Check "MMSH", select "Encapsulation method ASF"
6. Under "Transcoding options" check "Video codec". Select "h264" and give it a bitrate that you can cope with (64 will do fine actually for a webcam)
7. Click "OK" and "OK"
Now go to your other PC, fire up VLC, and "Open Network Stream"
Select "HTTP/HTTPS/FTP/MMS" And enter the URL of your Server box - remember to put the port number at the end eg MMS://10.20.30.40:1234
Click "OK"
That's all there is to it
Notes: If you need to forward a port (like port 1234 on your server PC), go to
http://www.portforward.com - it will guide you through how to do it
Also, you are not limited to using VLC to watch the stream - any network-capable Media Player should work fine (except WMP because it doesnt like the combination of ASF and h264)
Depending what player you use you might need to put
MMS://your-server-address:1234 or
MMSH://your-server-address:1234
Hope this helps