Hi,
first of all try with gst-launch (or gst-launch-0.10 or whatever
version of gstreamer you have):
gst-launch playbin2 uri=<uri>
to make sure it's not matter of coding errors.
Then try to stream from the same machine to avoid narrow bandwith or
routers/firewall issues.
I had a similar problem when the resolution of the image was too high (I
missed a lot of frames, so the decoder could not reconstruct the frame
image -- I guess the artifacts you are talking about are the
"difference" between frames), so check if you can low it down; I had
successful tests with 320x240, 6 frames/s with h264 encoding on a 512kbs
connection (actually the used bandwith was around 300kbs).
Hope it helps
Cheers
Federico
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