Um... Adobe is trying to make me install "Adobe Flash Media Server" before installing Adobe Flash Media Live Encoder, and the Server apparently costs $995 ... uh...

*tries Xsplit*

Glad I could help you get everything together.

Xsplit worked for you; I might have to try it again.

Welcome to the world of technical issues while streaming. 

Hm... My first guess is that there's interference in one of the lines. Your TV doesn't sound like that does it? Why don't you try and swap those cables if you can.

My second guess is that the microphone device for the Ezcap is set way to loud, resulting in that staticy-noise. Check your sound settings and see if you can play with them.

Have you tried using your new Ezcap with virtualdub? (This is the program I use to record game footage.) If not, I would try that as well to see if the issue is software related and not hardware related.

Finally, I know Xsplit likes to combine microphone streams together. Is it picking up on a microphone connected to your computer/laptop?

So at this point I can stream at a medium quality without lag (kinda blurry with MKWii). Like Miles said, good enough for streaming, I didn't want the high-end thing, so I'll take it.

Whenever I actually decide to stream stuff I guess I'll announce on Youtube and here... but first, Pikmin 2.

Xsplit is awesome like Evilpoptart said, actually. Even Miles said they made good updates since he last saw it.

Welcome! Happy to see you here.

Anyway, there are two options.
A) Live with it. This is what I do when I stream with Evilpoptart, as the other option isn't pretty.
B) Connect with your partner(s) over a video conference (skype, google chat, etc). This way you have a video feed going to your partner(s) that is live so they can keep up. Problem is, this uses even more processing power and bandwidth. Also, you have to select a webcam that is not in use by the streaming program (like xsplit or adobe flash media encoder.) Alternatively, you could try using a webcam splitting program, as it will allow multiple programs to access one webcam. A quick google search gives me this: http://splitcamera.com/

My biggest recommendation above all is to get an IRC client connected to your streaming channel. Watching your stream while you're streaming will waste precious bandwidth, and connecting to chat over an IRC channel will allow you to still watch chat while you stream.

I guess every twitch.tv channel has a corresponding IRC channel?

I'd suggest ChatZilla (Firefox extension) for doing IRC

Thank you both! When I test this in the morning I will let you know how it worked. I appreciate the help guys.