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Were encode/decode enabled?
I tried this with two friends who are over 3km away, and they got messages on the screen "slow network" and "decode error" or something like that. The same thing happened when they streamed to me(I got the messages). The setup was almost the same as yours, 50/50 host with at least 10/10 at the client side.
I used Hamachi to setup the VPN, and the client used 720p with settings for fast(not beautiful). Encode/Decode were enabled.
The streaming hitched every now and then (probably because I was using TeamViewer's VPN) but other than that it was flawless.