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Streaming also doesn't use your internet connection, at all. It only uses your home network. The speeds depend on the router/switch in between your 2 devices and the quality of the cables/wireless connection.
Wireless suffer from the number of devices connected, as only one of them can talk at a time, and the high data collision rate, creating high jitter (variation in ping times). Also wireless devices need to keep sending null data, just to ensure they're still there. That's why no one will use wireless for networks that need high reliability.
So wired network its almost always better for game streaming. (unless you have a really, really old 10Mbps switch.)
Wired will always be far superior to wireless. Valve had a chart (that I can't seem to find) when they first introduced streaming that showed how much better it was, and it was obvious. Wireless tends to get pretty laggy after more than about 10 feet from the router. If you can wire at least your farthest box to the router I'm sure a lot of the sound lag you're experiencing will go away. Of course wiring both boxes to the router will be best.
Hope that helps,
Nathan
Using a gigabit ethernet provide sufficient throughput for the stream, isolates the server/client connection from the other devices and provide the lowest possible ping times between them.
A 10Gbps network could transfer 1080p 60fps uncompressed video, but at the cost of a new high-end computer.
WIRELESS AC IS NOT FASTER THAN GIGABIT ETHERNET. Please guys, I see a lot of posts where people think a wifi signal will be faster than a wired signal. This is simply not true. Please google this stuff before posting erroneous information.
A normal Cable network is faster then a excellent wifi network period. Please use google to find out why and look for keywords like full-duplex, interference and lag.
In-home streaming does not cost you internet data (although I haven't test if valve build in a call-home ping... which would suck and cost you a kb or so).
You ingame settings should not have any effect on the streaming data, except that the host get a higher workload and might trip on that. The In-home streaming settings have effect on the amount of streaming data.