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vlc -vvv v4l:/dev/video:norm=1:frequency=307250:size=640x480:channel=0:adev=/dev/dsp:audio=0 --sout '#transcode{vcodec=mp4v,acodec=mpga,vb=512,ab=96,deinterlace}:standard{access=http,mux=ts,url=10.0.1.201:8080}'
In case its useful, the streaming machine is Mandrake 10.1, vlc 0.8.1, kernel 2.6.8.
I would be very grateful to anyone who could help.