i finally got it right i just wanted to share. this is on how to stream from VLC to blackberry.
what I'm actually doing here is capturing my Dreambox 500 stream on mpeg2 transcoding and streaming to a blackberry 8900.
You just have to know which combination works for you be sure you select rtsp as streaming and you have to specify a file name in path, for this purpose i used test.sdp you can use whatever you like it doesn't necessarily have to be a file with extension.
on the stream output options select the video - H.264 +acc (MP4) profile en select Edit
go to the video TAB
select MPEG-4 codec
the bit rate could be higher that the 180kb/s on the picture but i started seeing choppiness, same thing with frames.
make sure you select proper width and height mine worked well on 320 x 180 because i have a 8900
The Audio part just try to leave low settings so the audio bandwidth doesn't interfere with video
And this is the output string
You can play with your own settings.
What i do is assure myself I'm using the hotspot settings on my BB browser and enter the url.