I've done way too many hours of video testing and just happened to hit on different versions that do things better for some specific things than others. I downloaded this one from
http://ffmpeg.zeranoe.com/builds/ a while back and found that it did everything I needed it to do for video playback much better than other versions I've tested. It handles every file type I've thrown at it and it utilizes multiple core CPU's very well by distributing the load accross all cores evenly. Other versions I've tested either didn't handle every file type or didn't utilize all the CPU cores as efficiently.
You've got reasonable bandwidth assuming it's stable and consistent at the numbers you've posted, you should be able to handle 1000kbps setting without killin the rest of the office. Remember that that performance can vary if others are doing any downloading.
The next thing to look at is CPU load as transcoding takes a ton of CPU at high resolutions. When your on the server, play some hogh res video while monitoring the CPU load to see if it maxes out.
SS is truly a tweakers platform, but you can tailor what is reasonable to do with any particular harware combination so that you can get the most out of it. You may just have to find what is the max resolution video that your system can handle to get smooth playback. Realistically you probably need a quad core CPU for any video 720p or higher, up to 1080i. Blue ray takes dual quad core Xeon's or better with good upload bandwidth from the server.
You can get great video playback by converting the video files to flv or mp4 and turning off the transcoding so that the feed just goes directly to the player. JW will play either format natively, but at present we're limited to flv on the Android platform.
HTH
Another thank you to Glenn Sullivan who suggested renaming my collection of ffmpeg versions so that I could set up different transcoding settings through the different versions on the same site.