Cannot stream with Lame

[ENFORCER]

I have LAME installed and a "max bitrate set" on a per user basis to 96kbps. I had a friend login and start streaming and it worked fine. When I logged in and started to stream... first it took a few moments longer then usual and when it finally did work it sounded like, all i can describe it as is screaching garble. You couldent even hear anything that sounded like music. I have to set my "Max bitrate" back to "no limit" for it to start streaming properly again. I would have been happer listening to a modem tone The only thing I can think of is that its taking too much processor power as its encoding on the fly and it cant handle more then one. That would be pritty lame (no pun intended) but i dont have any other ideas.

Anyone ran into this before?

*UPDATE* It seems that now It cant handle even one stream at 96kbps. Winamp will buffer forever and then time out. I figured with a smaller stream (96k) there would be less to buffer when compaired to the "at this very moment stream" of 226kbps. When i logged in localy to the server, lame had tried to load and crashed multiple times. Im assuming as many times as i tried to start a new "compressed" stream.