Streaming Openwebif to VLC

All 1000Mbit:-   Cat6 cabling, switch and network cards.

VLC media player 1.0.6 (Goldeneye),

Ubuntu 10.04 (Lucid Lynx)............ (sticking with this release for a reason at the moment.),

Pentium 4 duel  3.4GHz with 3.2GiB memory

Problem ....VU+ Solo2 streaming SD & HD  both with stutter. (works fine with Dreambox)

Does anyone have any settings/suggestions please, perhaps Codecs, buffers Etc

Thanks