Step 1: Stream a real game.
Step 2: Need more than 1 meg upstream. Most ISP's can't do it and if its a cable company, I don't trust their measurements due to their network topography. Locally where I am, it's crap but I might have a solution that works for me due to something new my company is doing now.
Step 3: Get away from using a wireless connection to your router and physically hook up to that router/modem. Because its smexy. This helps you avoid unnecessary wireless latency that can be generated by interference. Especially if you have a lot of neighbors with wireless access points as well. Also, don't get me started on microwave ovens.
Step 4: Now I'm not usually picky about my processors but my recent Intel upgrade has shown great media recording performance compared to my AMD. Intels have always been great for it. It will probably show in my streams as well but I didn't experiment much before due to my crappy upstream capability.
Step 5: ....
Step 6: Profit!
I'm no expert on this but this is what I've gathered from my experience. Remember, keep it fun! This weekend I plan on a bunch of Dark Souls 2 play so it could be a good opportunity to test your streaming some. I will be doing some shadowplay recording to see how much space our session will take up and it will give us content to play with/compile. Knowing that game of course, there will be some hilariously frustrating moments.