I tested the beta for this out not long ago and it worked nearly flawlessly for every game that I tried (from Windows PC to custom built steambox). One of the big thing that needs to happen is steam needs to be able to keep the pc from sleeping or locking by itself instead of having to change system settings. Otherwise, I couldn't be happier with it!
You should be able to see on screen stats with a setting enabled. It may help pinpoint it.
According to Valve the higher bit rates are in fact harder. I figured lower compression would be more easy, but the high bit rates DO look better.
You can try to either place a screen on your onboard video or use the trick from mirillis(just the first google guide to it) to fake a screen on the onboard video. This should allow Quick Sync to help with the encoding.
Please note that some games seemed to skip when panning and upon playing a game on onboard it becomes apparent that the skips are actually a what seems to be a frame going backwards a frame and them resuming how it should.
I generally can not see this being a network issue since like you I am running gigabit and have seen transfers as fast as about 115 megabytes a second between the 2 systems.
This leaves me thinking it is a decoder issue or encoding issue.
Pretty good most of the time - but gets laggy (network lag - not processing lag).
Better than using my old laptop to play the games itself - as I couldn't play most of them - but I still notice the lag in some games which is enough to put me off playing with this method and just using my main PC. Not sure how Steam improving their client over time will solve my networks lag. Is that even possible?
I actually used the host computers keyboard and mouse(so if you have a long range wireless set or long usb cable ) and it seemed better.
This makes sense seeing as your inputs have to be sent to the host(delay) and then you have to wait for the action to happen (more delay).
For fun, give it a shot.
Again. In home streaming still has some bugs to work out for sure and it tanks performance on some games currently(much better if you have a supported Intel onboard video card to do some of the lifting.).
I noticed in some games it almost seemed like when moving side to side with the mouse, a skip would occur, but it looked like the game goes backwards a frame or 2 and then keeps running normal. This could be a decoding issue. I have to test on more systems.
The other thing was the default settings looked quite compressed so pushing the bandwidth is another good idea.