II always used my normal streaming settings. Never really messed with the settings much yet. The video settings are all machine specific so its a matter of tweaking them all individually for the best quality. My captures of NWN seem pretty crappy so far. A lot of lost pixels and distortion.
Encoding/Video
x264, Use CBR, Quality 5-10(depends on your machine), CBR padding, 2500 kb/s max bitrate(for twitchtv)
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Encoding/Audio
112/160 kbps AAC(twitchtv requires 160+, 112 is perfect)
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Video
1280x720p or 1920x1080p resolution
30 fps
Disable Aero
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Broadcast Settings
Save to File for local storage.
I usually clip highlights from streams though which can then be posted to youtube w/o using local storage at all '>
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Advanced Settings
CPU Preset: Veryfast
If you have at least an i5 cpu: faster
i7: maaaaybe Fast.
Every time i have changed this it has ended badly rofl.