Adobe media server 5.0

It's probably less to do with GPU. While the video size is fairly small you're actually asking for 60fps video. You're giving 1 second 2000kbit and want it compressed down to 60 quality (fair to poor, more importantly, expensive to compress). Compressing 60 frames that fast stresses your camera.

For each frame you're giving the video 33kb to display. Setting quality and bandwidth higher (say double that) for 60FPS might be necessary to reduce the systems need to compress.

Honestly I think you should simply reduce your framerate to something a bit more standard at the same other settings, such as 30fps or 24fps. But it depends on what the videos purpose is.

Lastly while FMS trial works fine on my Win7 install I'm pretty over-jacked on hardware. I also have cameras that internally encode themselves offloading that chore from the CPU. I can stream up to 1280x720 @ 60FPS but I need to crank up the bandwidth to about 12000 and keep quality above 70 or even I start seeing some serious bog, and my usage is ~1%. This just means my camera is innundated. I change it to 30fps/5000kbit 1280x720 70Q, it's smooth as glass.