Thank you for testing.

I have a max download max limiter in in place at about 3Mbps. Part of testing was also to make sure that the server can throttle the speed per site, per user, per download... down the the grains of sand if the webmaster wanted.

I've lifted the cap to "unlimited" and in my testing I was getting about 7Mbps download and that is about the max at my home connection.

Why did I say that 1024 is large?
Some users still have dial up.. yes.. there are still parts of the US that hasn't caught up to the speeds we get in the big cities. Those users that have less then a 1 Mbps will have a really hard time streaming live video at that rate (or even HD). Is is just a technical fact. Most users will still expect to stream 1024+ KB/s videos on their cell phone at 256 kb/s speeds.

Why Silverlight?
Some of our clients have 1000's of videos already done in .wmv.
They also have windows servers for streaming.

For them, moving to Silverlight is the best way. No re-encoding, no transcoding, and no new servers. They can use what they have and offer better streaming to all users. Silverlight is used by netflix and a lot of other media companies. It uses less server resources and is growing. Content owners can also add DRM to siliverlight if they wanted or needed.