I'm trying to use VLC to transcode a H264 live stream into a low quality stream for low bandwidth.

My problem is that VLC will not create the sdp file for me.

Code:
--sout "#transcode{venc=x264,vcodec=x264,vb=500,scale=1}:rtp{dst=127.0.0.1,port-video=10010,sdp=file:///home/mike/cam1.sdp}"
There's the relevant part of the command. I've read some where that it's hit or miss on OSX or linux. I'm running Lucid. I've seen plenty of posts where other Unix users have gotten it to work.

I've tried changing the permissions to 777 and even tried to touch the file to create it. Any help would be greatly appreciated.

Thanks,
Mike