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That all depends ond your internet connection and the source of live stream. If this is just for your use you would want the highest possible bitrate. Also, x264 might be a good idea (but you'll need a good computer to encode that live, may want to stick with VP6). Definately you'll want AAC+ audio. As for the resolution you just need to pick what looks best to you. Do some tests with a live source and see how it looks to you. (Normal video resolution is 720x480, but the pixels aren't square so you'll want to go with 640x480)
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