Video streaming with vlc

I have a media library on a linux server, but would like to be able to play videos from the library on machines that have better video display abilities.

on the server

vlc -vvv princess-mononoke.iso --sout '#standard{access=http,mux=ogg,dst=finninday.net:8080}'

on the client

vlc http://finninday.net:8080

This doesn't supply audio...