VLC develops delay/lag with live stream

[GreenEnvy]

Hi,
I'm using VLC 1.02 on Win7 32bit.
I have a IP camera that streams mjpeg and mpeg4 via http.

I have got VLC to play the stream, and at first it's almost perfectly in sync. If I stand in front of the camera and wave, I see that on the video within half a second.
However, if I let the video play for 10 minutes or so, it gets behind about 20-30 seconds. (so if I wave, it happens on screen 20-30 seconds later).

I thought adding commandlines like dropping late frames or skip-frames would prevent this.
I'm currently not doing any audio (which to do, I'd have to switch to the mpeg4 feed for anyway instead of mjpeg).

Here is the commandline I am using, any thoughts?
c:\Program Files\VideoLAN\VLC\vlc.exe -f --video-on-top --qt-display-mode=2 --http-caching=30 --skip-frames --drop-late-frames --http-continuous --http-user-agent="Cisco210Viewer," http://user:password@10.4.0.224/img/video.mjpeg

[VLC_help]

I think there is a bug somewhere if the offsync distance grows longer.

[ipacker]

I have the same problem with several different live mpeg4 streams.

Don't seem to get the problem with live h264 streams.

Tried version 1.0.2 -> 1.0.5 and various settings and flags to no avail.