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Go to Advanced client settings, enable Display Performance Information. Follow the onscreen prompt to show your performance (start+y with steam controller).
Check if you have any packet or frame loss. If you have anything more than 1% in either of those you will definitely experience issues such as graphical artifacts(clouding, pixelation) and sound stutters.
If you have frame loss you should lower your graphics and stream quality until it goes away (below 1% frame loss is "bearable")
I'm not exactly happy with bumping down to 720p when it seems like, displaywise, my setup didn't have any problems with 1080p other than audio.
If you turn on your streaming stats overlay while in-game, you get a lot of information about lag, ping, dropped frames, etc. It also tells you the Encoder that's being used (on your source gaming PC), and the encoding lag that's being added.
If you look at the streaming stats, and see:
Encoder: Game D3D9
Streaming Graph: Dark blue bar (encoding lag) has spikes while you have a lot of activity / motion on screen
Screenshot (manually rename this link): bit-dot-ly/1NhokoU
That means that your game is using software-based encoding, and that it's adding quite a bit of encoding lag; especially when there's a lot of motion on the screen. That added lag introduces audio and video "skipping" when streaming. Steam Link was using software encoding, even though I specifically selected "Enable Hardware Encoding" in Steam settings.
The problem for me was that I had nVidia Game Stream / ShadowPlay running in the background. This is the feature where nVidia cards automatically buffer the last 5/10/20 minutes of game activity (like a DVR), so that you can create instant-replay videos. This feature uses the hardware H.264 encoder on your video card; and prevents other applications from using that H.264 encoder. Go into nVidia GeForce Experience, and disable Game Stream / ShadowPlay.
Once I did that, I re-confirmed that I was using both Hardware Encoding and Hardware Decoding on my Steam Link, and saw that my game was now correctly using the nVidia H.264 hardware encoder. Encoding lag dropped to 0, and no more stutters / skipping.
New streaming stats:
Encoder: Desktop NVFBC
Streaming Graph: No spikes on dark blue bar (encoding lag)
Screenshot (manually rename this link): bit-dot-ly/1VXOXRW