This sample is tested on Real Player from Real Networks that can be found on latest mobile phones.
(Stream is compatible with Symbian OS, IPhone, Windows Mobile)
VLC configuration sample:

:sout=#transcode{soverlay,ab=32,samplerate=22050,
channels=1,acodec=mp4a,vcodec=h264,
width=320,height=240,fps=15,vb=192,
venc=x264{vbv-bufsize=500,me=umh,
partitions=all,level=12,subme=7,threads=4,
no-cabac,ref=2,mixed-refs=1,bframes=0,
min-keyint=1,keyint=30,trellis=2,direct=auto,
qcomp=0.1,qpmax=51}}:
gather:rtp{mp4a-latm,sdp=rtsp://{IP}:554/tv.mp4}
(RTSP streaming compatible with Real Player)

—
- or change last line to
gather:standard{access=http,mux=mp4,dst={IP}:80/tv.mp4}
(HTTP is not compatible with Real Player)
- or to
gather:standard{access=mmsh,mux=mp4,dst={IP}:80/tv.mp4}
(MMS over HTTP is not compatible with Real Player)

Remember!: Not all sizes and framerates are supported,
place your IP to {IP}.
For example: Nokia 5800 accept only 320x240x15fps up to 256kbit/s
Wikipedia about Real Time Streaming Protocol
Used ports are
RTSP (TCP: 554 + UDP)
HTTP (TCP: 80)
MMSH (TCP: 80, true 1755 MMS not supported)

x264 Features:
* CAVLC/CABAC * Multi-references * Intra: all macroblock types * Inter P: all partitions * Inter B: partitions from 16×16 down to 8×8 * Ratecontrol: constant quantizer, single or multipass ABR, optional VBV * Scene cut detection * Adaptive B-frame placement * B-frames as references / arbitrary frame order * 8×8 and 4×4 adaptive spatial transform * Lossless mode * Custom quantization matrices * Parallel encoding on multiple CPUs * Interlacing

Here is my recommended values for x264 (H.264 – MPEG4 AVC) encoder

For better visual quality and improved compression ratio I’m using
MSU Graphics & Media Lab Denoiser

MainConcept MJPEG (Motion JPEG) have great quality on 90%
(600MHz CPU is enough for 720×576, also this is good for HD)

HuffYUV for lossless compression :-) ehmm yes this produce big file.

MSU H264 codec comparison 2007