2mbit up, but still bad quality?!

Hi!
I am using a Macbook 2.2ghz intel, 4gb laptop to live stream. The location I use got 2mbit both up and down. At the moment I have been testing with a old Sony Handycam DCR-TRV9E. I would like to send this to a place where they show the video with a projector. So I really want the best video quality as possible. At the moment I am not quite sure where the problem lies. These are the settings I have used in FMLE:
Format: VP6
FPS: 24
Input: 640x480
Bitrate: 500
Output: 640x480
Sample rate: 44100hz
Bit rate: 96
I have tried to adjust the bitrate up, but have experienced more issues with the video flow. After reading in the forum I guess I should turn up the bitrate even more if I turn up the pixels? With a upload speed of about 2mbit, Should not I be able to use a total stream of about 1500kbps?
To get a smooth and high quality stream, should I get a better hd-camera? I been looking into testing 4G mobile internett connection, but maybe that´s not the problem? I believe my macbook should be able to handle this? We are streaming through sermon.net but they use CDN so I don´t know.
What´s the deal? Anybody?
Thanks!
Jørgen Storvoll

As your cam provides PAL output i.e. (720x576 with 25 fps), Try with these settings:
Format: VP6
FPS: 25
Input: 720x576
Bitrate: 800
Output: 720x576
Audio: MP3
Sample rate: 44100hz
Bit rate: 96
OR
Format: H.264
FPS: 25
Input: 720x576
Bitrate: 800
Output: 720x576
Audio: MP3
Sample rate: 44100hz
Bit rate: 96

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