For those of you still anxiously awaiting a working version of Albatross, we are one big step close!  The latest test builds of VLC 0.9.9 have fixed on-the-fly transcoding and streaming to Flash video format (.flv)!  Okay, it’s almost fixed.  They still haven’t fixed the problem where transcoding the audio to any sample rate other than the source file’s native sample rate causes the audio and video to speed up or slow down accordingly, but at least it’s working again!  You can download them for Mac OS X here:

http://jones.videolan.org/~videolan/0.9.9-test/

I’ve only tested this on the Mac so far, but history tells me that it should work in other environments as well.  Works with a stock installation of Albatross 0.5.1.