Thanks for the pointers everyone. I've been hacking away at this for hours and success!
I'm nearly there. Need to work on a few things but I'm able to stream from my sat top box via my server across the network to my PC running VLC.
[0x7f5818000b28] main input debug: Buffering 100%
[0x7f5818000b28] main input debug: Stream buffering done (320 ms in 316 ms)
[0x7f5818000b28] main input debug: Decoder buffering done in 0 ms
[0x7f58080062d8] stream_out_transcode stream out debug: late picture skipped (41899)
[0x7f58080062d8] stream_out_transcode stream out debug: late picture skipped (23895)
[0x7f58080062d8] stream_out_transcode stream out debug: late picture skipped (5789)
[0x7f58080062d8] stream_out_transcode stream out debug: drift is too high, resetting master sync
[0x7f58080062d8] stream_out_transcode stream out debug: decoder aspect is 1.777778:1
[0x7f58080062d8] stream_out_transcode stream out debug: source pixel aspect is 1.000000:1
[0x7f58080062d8] stream_out_transcode stream out debug: scaled pixel aspect is 1.000000:1
[0x7f58080062d8] stream_out_transcode stream out debug: source 1280x720, destination 480x270
[0x7f58080062d8] stream_out_transcode stream out debug: encoder aspect is 480:270
[0x7f57f8023618] main filter debug: looking for video filter2 module: 18 candidates
[0x7f57f8023618] swscale filter debug: 1280x720 chroma: UYVY -> 480x270 chroma: I420 with scaling using Bicubic (good quality)
[0x7f57f8023618] main filter debug: using video filter2 module "swscale"
[0x7f57f8023618] main filter debug: TIMER module_need() : 2.119 ms - Total 2.119 ms / 1 intvls (Avg 2.119 ms)
[0x7f58080062d8] main stream out debug: Filter 'Swscale' (0x7f57f8023618) appended to chain
[0x7f58080062d8] stream_out_transcode stream out debug: destination (after video filters) 480x270
[0x7f57f8000e08] main encoder debug: looking for encoder module: 13 candidates
[0x7f57f8000e08] avcodec encoder debug: libavcodec already initialized
[mpeg4 @ 0x7f57f81f18a0] removing common factors from framerate
[0x7f57f8000e08] avcodec encoder debug: found encoder MPEG-4 Video
[0x7f57f8000e08] main encoder debug: using encoder module "avcodec"
[0x7f57f8000e08] main encoder debug: TIMER module_need() : 1.975 ms - Total 1.975 ms / 1 intvls (Avg 1.975 ms)
[0x7f5808001658] stream_out_rtp stream out debug: maximum RTP packet size: 1400 bytes
[0x7f5808001658] stream_out_rtp stream out debug: RTSP: adding /stream.sdp/trackID=0
[0x7f5808001658] stream_out_rtp stream out debug: sdp=
v=0
o=- 15414710285813618157 15414710285813618157 IN IP4 streamer
s=my_stream
i=N/A
c=IN IP4 0.0.0.0
t=0 0
a=tool:vlc 2.0.8
a=recvonly
a=type:broadcast
a=charset:UTF-8
m=video 0 RTP/AVP 96
b=AS:56
b=RR:0
a=rtpmap:96 MP4V-ES/90000
a=fmtp:96 profile-level-id=3; config=000001b001000001b58913000001000000012000c48d88007d0f0421d443000001b24c61766335332e33352e30;