Rc buffer underflow error when streaming from webcam

I am having trouble with mp2v stream. I’m streaming from my webcam which gives an MJPEG video as output. After connecting the stream I get the following underflow error:

"rc buffer underflow"

This error leads to the application crashing every time. The only way I can prevent it from crashing is to either lower the video resolution to something very small like 320×240 or to increase the bitrate to something that’s very high, around 4000. I cannot afford such high bitrate on my bandwidth.

Can anyone please suggest a solution to my problem? I would ideally want the resolution of the video to be 640×480 with a bitrate that’s not bandwidth intensive.