flash media encoder 3.1

Hello,

I am trying to stream my xbox 360 gameplay through justin.tv.

I am having major problems with this, the first problem is when i use the flash media encoder 3.1

The software that I am using is -

Totalmedia extreme

VHScrCap

Flash media encoder 3.1

The problem which I have is when i cap the screen which i want to broadcast and transfer it into FME3.1, the picture is all blocky and and dead pixelated.

When I look at the other ppl doing this on utube, there is a perfect picture.  I have changed the frame rate and stuff like that, but no matter what i do, its still the same, does anyone how how to fix this.

This is my computer specs -

Inter core 2 Duo E7500 2.93Ghz

Corsair 4GBKit (2x2GB) DDR2 800

Samsung 500GB 16mb cache

Vista home prem 64bit

NForce 6101i-Itx Geforce 7050 Graphics.

Thank you.