Question / Help Need help optimizing OBS VCE for stream

[Gooby]

As stated above I have been working on getting my stream to look and run smooth for months on my own and I am running out of ideas. Basically, it seems, that I am getting extreme frame drops/errors/pollution or something. My stream looks like ass, haha.

Any idea on what I can do? Here are my specs of the computer:
Summary
Operating System
Windows 10 Pro 64-bit
CPU
Intel Core i7 4770K @ 3.50GHz 38 °C
Haswell 22nm Technology
RAM
16.0GB Dual-Channel DDR3 @ 798MHz (9-9-9-24)
Motherboard
ASUSTeK COMPUTER INC. B85-PLUS (SOCKET 1150) 28 °C
Graphics
E2341 (1920x1080@60Hz)
DELL S1709W (1440x900@60Hz)
2048MB ATI AMD Radeon R9 200 Series (MSI) 67 °C
Storage
465GB Western Digital WDC WD5000AAKS-22A7B2 (SATA) 34 °C
931GB Seagate ST1000DM003-1CH162 (SATA) 32 °C
465GB Seagate BlackArmorDAS25 USB Device (USB (SATA))
Optical Drives
ASUS DRW-24B1ST i
Audio
Realtek High Definition Audio

So it's not a top of the line rig, a little old, but it should be able to stream pretty well I think.

Here is a screen shot of my settings in obs:
http://imgur.com/a/cbLEf

And lastly a link to my last stream:
https://www.twitch.tv/thegoobyshow/v/88035558

I have attached the log file as well.

Let me know what I can do to fix it!

Thanks.

 

[Gooby]

Bump

 

[Harold]

Trying to optimize the stream while using VCE as your encoder will result in below standard picture quality.