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)

— DOWNLOAD SAMPLE FILE NOW!

Nokia 5800 XpressMusic can accept only MPEG4 legacy format for smooth playback in 640×360 resolution.
You must have ffmpeg installed (i’am using one from SUPER encoder).
As you can see this is very easy and output video have excellent quality due to 2-pass encoding.
Picture is better than standard definition TV and is 16:9…
Deinterlace and subtitles can be included – watch remarks.
mkv x264 / ac-3 rips working just fine, enjoy ;-)

— please download encode.bat here

@echo off
set ffpath=C:\Program Files\eRightSoft\SUPER
set opt=vbitrate=1687500:vrc_maxrate=1835008:
vrc_buf_size=917:mbd=2:vstrict=1:keyint=500:
cbp:mv0:vme=4:trell:v4mv:vqmin=3:lumi_mask=0.03:
dark_mask=0.2:scplx_mask=0.1:tcplx_mask=0.1:
naq:vhq=4:precmp=6:cmp=6:subcmp=6:
vb_qoffset=0.6:threads=2:level=31
rem set sub=-sub “file.srt” -subcp cp1250 -subfont-text-scale 3.2 -font c:\WINDOWS\FONTS\ARIALNB.TTF
rem set deinterlace=:phase=b
“%ffpath%\mencoder\mencoder” -sws 9 -nosound -vf scale=640:360,eq2=1.3:1.1:-0.06:1.3%deinterlace% -ovc lavc -lavcopts vcodec=mpeg4:%opt%:vpass=1 -ffourcc mp4v %sub% -o nul: “%*”
“%ffpath%\mencoder\mencoder” -sws 9 -oac copy -vf scale=640:360,eq2=1.3:1.1:-0.06:1.3%deinterlace% -ovc lavc -lavcopts vcodec=mpeg4:%opt%:vpass=2 -ffourcc mp4v %sub% -o c:\input.avi “%*”
“%ffpath%\ffmpeg” -i “c:\input.avi” -vcodec copy -acodec aac -ab 96 -ac 2 -ar 44100 c:\final.mp4
del c:\input.avi
del divx2pass.log
pause

— please download encode.bat here

Place this code to file (example C:\WINDOWS\encode.bat) and easily type in prompt “encode.bat video.avi”… then wait and c:\final.mp4 file may appear.
Yes you can easily change this script for LINUX ;-)