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Unlimited bandwith sure will make it worse, it tells the host to give all power it can spare to the encoding, but not necessarily with better results. Valve recommends not to use this option. I´d suggest you try 30Mbit/s encoding and tinker with balanced or fast settings to see if this improves your experience.
Given your setup, I'd use
For encode
HW Intel > Software > HW AMD
For decode
HW Intel > HW Nvidia > Software
Might be relevant:
http://steamcommunity.com/groups/homestream/discussions/0/617320628217643948/
How are your latency/ping and packet loss between your two hosts?
Now how can someone explain why? Is software encoding and decoding basically letting both CPUs do all the work?
How can I enable Intel Quicksync HW encoding? I know the workaround regarding deleting the amf folder and forcing it but how does that work? Not one person on that thread mentions how you actually enable it! In other words, under Advanced Host options, I dont see a checkbox for Intel Quicksync.
BTW, all things considered, if your CPUs are fast enough on both the host and the client, software encoding and decoding will give you the best results with the best compatibility. However, especially on the host this will often not be the case because the host also has to run the games which are often very CPU intensive. There are several games that I can play smoothly using software encoding, but when I enable hardware encoding I can play any game, regardless of how demanding it is.
Regarding your network, you said that you have a 15ms ping and 0.50% packet loss on your powerline network. In my opinion both those values sound a bit high, especially the ping. Ideally your powerline network should have 0 packetloss and about 1ms ping, but I'm not sure if that is possible for all adapters. If that 15ms you mentioned is the display latency as indicated in the performance overlay, then that is actually very good! Anyway, to make sure you can actually use in home streaming, you should test the effective bandwidth of your network in the direction of your host to your client. The easiest way is to copy a huge file (video or something) from host to client using a windows network share and look at the transfer rate. I'm not sure what the minimum rate is at which in home streaming is still viable, but I would guess that you need about 60 Mbit/s, which is about 5.5 Mbyte/s. So if your windows network file copying consistently at around that speed or faster, you should be ok. Open a command prompt and use "ping 192.168.1.101" or "ping mylaptopshostname" or whatever the IP/hostname is of the client to see the roundtrip ping time. Above 10ms is definitely very bad, and most wired networks should have about 1ms (wireless can have ~3ms or more).