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3-3.5mbit is enough to stream torrent on linux. If slower I guess waiting game
I like the problem solving effort you applied while tinkering +1
Easier to use a p2p streaming application on a VPS. Preferably with a high traffic limitation. e.g 1-2 tb.
SD aka 480p is 1.5-3 Mbit/s
HD aka 720p 4.5-6 Mbit/s
Using decent compression on both video/audio codecs will get you decent picture sound.
I mostly use h.264 and AAC.
There are plenty of guides floating on internet.
I stream TV channels this way, so i can watch them in a remote location.
Works even with a shitty HSPDA dongle which is capped to 2 Mbit/s.