OK, since you get into these kind of debacles, let me ask you this:
What on Earth are you actually doing?
-Are you using this as a security camera video cache?
-Are you broadcasting porn?
-Why are you sending the signal all over, using wireless?
What I was saying in my first post is this: your encoding format is quite unusual, and I doubt many people here will know what are you talking about, or how powerful a computer will have to be to do this "on the fly"... most of use, however, will be able to advise you on MPEG1, MPEG4, MPEG2 and so on... Except that you're adding an extra layer of complexity, since you want to be streaming this thing ([resumably "live"), over God know what sort of connection... etc.