I will reply years later:
I think then you need to increase the size of the video and audio buffers, namely
--audio_fifo n Size of audio output fifo in seconds
--video_fifo n Size of video output fifo in MB
--audio_queue n Size of audio input queue in MB
--video_queue n Size of video input queue in MB
I would try increasing these as well to see if it helps. I'm afraid I don't suffer some network packet loss, so I can't give you any example settings, but I would try increasing everything until you have smooth video.