H264 live video streaming playback dropping frames and jerky output

I am create video conferencing tool using H.264 as video codec.I noticed Flash player h264 live streaming  is dropping frames at receiver end very rigorously when streaming to fms 3.5. There are no frames dropped on publishing end. Dropped frames correspond to  NetStreamInfo. The Netstrem.currentFPS value is almost 60% less from publisher FPS value  even there is no latency at receiver end . The output is thus very jerky.  CPU usage is normal at receiver end.

Is there any settings required at server side to remove Jerky playbak of stream.

Can some one please help out on this.

Thanks.