i tried transcoding to mpeg-4 video with mp3 audio with ffmpeg and then streaming to stb. these kinds of ffmpeg options will make better quality:
#transcode{fps=20,venc=ffmpeg{hq=rd,trelli,strict=1,strict-rc,pre-me,keyint=300,bframes=0},vcodec=mp4v,width=352,height=288,scale=1,vb=500,acodec=mp3,ab=64,channels=2}
if your stb could not accept much higher stream bitrate, this option will work fine.
key issues for better quality with small bandwith is small video bitrate, small fps.