Programming an IPTV application- Client/Server [closed]

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I am part of a team which has been given a task to deploy an IPTV solution for a company. The system has been architect-ed like this.

There is Video capture card , which receives satellite signals from a satellite receiver. This video capture card is part of a windows 7 machine. The signals need to be trans coded here and passed to a streaming server which will be received by end users.

The end users will be desktop users having a C#.NET application installed to view the channels.

I am confused at the choice of server software as I have multiple choices - Windows Media Server, VideoLan (VLC project), or Flash Media Server, it also supports MPEG-2 HD.

My main aim to be able to stream MPEG-2 channels with HD quality and encrypt the channels at the server end so that the streams can be protected. I know reversing is possible but it wont be easy as for every naive user with wireshark snooping my streams.

If any of you here has ever done such an implementation please do suggest me the best technologies I should go for.

Iam open to C#,C++ and other similar languages. Any help shall be deeply appreciated.

edit: End Users shall be part of Internet and not necessarily a lan, reason for this question is internet doesn't support multicast like Lan, so I need some suggestions.

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Guys, We have finally settled to use XMBC , Boxee's code base for our solution.