Porblem Streaming

[b8n2u]

VLC will not stream AVI/DiVX properly without active transcoding. MP4/x264 works beautifully. But when I try it with an AVI, the output client only receives audio. It will work when I select active transcoding but the output suffers lag and buffering. I suppose I could encode it prior to streaming but that takes a lot of time I would also like to avoid.

Any help is greatly appreciated, thanks.