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Both Livestream and USTREAM have comparable offers, it depends on the individual requirements. The Encoder USTREAM offers a browser based encoding service, but the quality is relatively basic.
Fortunately USTREAM has support to stream from higher quality third party encoders.
The Live Streaming If you don’t have a budget to pay for your own CDN, services like USTREAM and Livestream provide the full infrastructure to deliver video content to your viewers.
And more importantly, if ads are acceptable, they offer the basic service for free.
If you don’t have a more expensive HD firewire camera available, an upgrade to a higher webcam is a great move to improve the quality.
A popular encoder is the Adobe Flash Media Live Encoder, which is easy to setup and free.Even better, USTREAM provides a downloadable XML configuration file, which the encoder can simply load, and you are ready to stream.