There's a shitload of factors that go into making the stream jumpy, that can be anything from the actual CPU encoding things or the connection itself. On the encoding end there's basically three factors: the resolution, the capture FPS, and the compression. Lower resolution at lower compression can tend to be a bit more CPU friendly than higher resolution at higher compression and end up looking the same.
There's also the connection end, making sure that you are picking the optimal server to stream to, many times the default will be one located across the country from where you are, or even a closer one that's just busier(i.e. I live in the Chicago suburbs, but there's a ton of traffic to that server so usually I get much better results using Ashburn, VA or one of the Texas servers. Also if it helps at all I wrote this up a while back:
http://www.bluegartr.com/threads/108...-and-Justin.tv, while I've learned a bit more about some of the settings since then a lot of it is the same, though the actual way to change the settings is slightly different(in the channel settings there's a little gear symbol you click to access the preset options now).
Also, are you adding the game as a GameSource, or are you region capturing the game's window?