Ubuntu does not support MPEG4 Video part 2 encoding. Thus transcoding
will not work.
As for audio, it will work if your input codec is support by the VLC RTP
output. Otherwise it will fail. You need to transcode also (do note that
VLC cannot transcode to MPEG 4 Audio due to lack of license-compatible
encoder).

This is not a bug.

** Changed in: vlc (Ubuntu)
       Status: New => Invalid

** Converted to question:
   https://answers.launchpad.net/ubuntu/+source/vlc/+question/101924

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VLC Streaming problem
https://bugs.launchpad.net/bugs/344380
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