I started using Windows Media Encoder with Media 7 compression, check out the quality of the stream on the page below. I know it also has a Mpeg4 codec in the free encoder.
I'll have a comparisons page up soon.
Until then check this out;
http://www.xxxwebhosting.com/streaminghosting.htm
Maybe do some WMV files?
Vegas 3.0 will edit all those wmv, mpg and others.
www.sonicfoundry.com