EDIT: vb=1742 also seems to work since I have went wired over wireless. will keep trying to push it higher when I get a chance. also there seems to be an issue transcoding DTS audio in vlc but I need to investigate more before submitting a bug report.
How to stream anything on your hard drive to your roku, well anything vlc can read, which is pretty much anything.
These instructions are for a debian based linux. If you want windows instructions ask someone else.
You have to download the newest version of the vlc source to get HLS support.
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apt-get remove vlc
apt-get build-dep vlc
git clone git://git.videolan.org/vlc.git
cd vlc
./bootstrap && ./configure --enable-x264 && make
oh when compile vlc make sure you copy the vlc-wrapper program fron the bin directory into same directory as the compiled version of vlc. (usually cd bin; cp vlc-wrapper ..)
Now to the actual streaming.
This assumes assume the following:
The Web Server root directory is /var/www
The domain name of the web server is 192.168.250.24
The stream segments & index files will be written into /var/www/streaming/ and will be accessed via http://192.168.250.24/streaming/mystream.m3u8
The destination stream name index file will be called "mystream.m3u8"
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vlc-wrapper --sout-x264-vbv-bufsize=10000 --mms-caching 0 -I http --http-host 192.168.250.24:8000 /home/myuser/somefile.avi vlc://quit --sout='#transcode{vcodec=h264,vb=1536,venc=x264,acodec=mp4a,ab=96}:std{access=livehttp{seglen=10,delsegs=false,numsegs=0,index=/var/www/streaming/mystream.m3u8,index-url=http://192.168.250.24/streaming/mystream-########.ts},mux=ts{use-key-frames},dst=/var/www/streaming/mystream-########.ts}'
Change the settings to reflect your ip addresses and you are set.
I also included the web interface on port 8000, with that enabled you can use one of the vlc remote control programs to add things to your playlist, pause, fast forward. You can also use the roku remote control to pause and fast forward etc, but you cant add things to your playlist. They have vlc remote programs for all the major smartphones. if your using a phone that doesn't have one, just use the web interface via your phones browser.