OK. For live I find it depends on the number of individuals streaming live video. If you are in the 1-5 range, there shouldn't be a big issue for using the highest quality setting for the live video. 5+ I would start bringing it down in quality and ultimately you may need to take it to the lowest quality for a large number of live videos.
For on-demand video, I stick with settings around the following:
FLV
720 X 480
800 kbps
These numbers are just a guide, going above them may lead to performance issues, and going below may improve the experience. In the end it all comes down to what you are willing to trade in quality for bandwidth required to deliver it.
For room bandwidth settings, I generally don't change it from LAN unless I know that my audience will require some bandwidth throttling. Shifting down to DSL/Cable will reduce the quality of everything in the room by limiting how much bandwidth can be used. It's a good feature if you need it, but can be frustrating if you don't.
These are just my thoughts on settings as a user, as I don't work for Adobe. I've not seen any documentation from Adobe about recomendations (just a chart of what bandwidth will be consumed on average by each function in Connect). If anyone else has thoughts or guidelines they have put together, please share them.
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