ADG...do NOT encode h264 at 5 megs. You will have tons of surfers complaining.
It has nothing to do with internet speed.
Here is why you don't need to encode them past 1.5 MBS:
First off H264 is DESIGNED to give incredible quality at low bit rate.
When I first started doing streaming video I did a ton of research. And I saw guys who had vids encoded at 500 kbs that were stunning.
I never have gotten THAT good at tweaking the encoding settings.
But where you want to be is around 1.5 MBS (1,500 kbs)
And here is why...when you are streaming a vid, the load is on the end user (viewers) computer.
I didn't realize that at first.
And I got all smarty-pants about it and decided that I was going to encode my streaming vids at 2.5 MBS
They looked GREAT! And I had no problem streaming them on my work computer!
So I went in and re-encoded all of the members area to 2.5
Then I left home to go to one of the shows (I think it was Phoenix Forum a couple of years ago)
I got to the hotel and opened up my laptop and checked email.
Suddenly I've got dozens of members writing me raising hell and saying that the vids were "stuttering" and buffering, etc.
So I went there on my laptop...and YES they were.
You see, my work computer is a monster (mega cpu and ram for video work) and it had no problems streaming those vids. But a "normal" computer? No way.
I had to write emails for the next 3 days from the show asking my members for patience as I couldn't do anything about it until I got home.
I re-encoded every vid to a variable 1.5 to 1.7 bit rate when I got back home. Problem solved.
Then I did a little more research and found out that "no" the average computer can't handle an h264 stream much bigger than that (with anti-virus running and background tasks etc.)
So do NOT try to stream .h264 at that high of a bit rate. Trust me on this. Or at least go ahead and encode one at 5 MBS. Then set it up as a test stream and go to several different "normal" powered computers and try to watch it.
It won't matter how fast your internet connection is...the stream will use up all the remaining computer resources on the user end (as you know most PC's are using up tons of resources when they aren't even doing anything).