online video chat with flash, rails

Hi guys,

I have a question:

For a client i am asked to build a huge application that should
incorporate online "classes". So the teacher should be able to give live
video lessons and students should be able to view this live feat.

This is something i have never done before and was wondering if there
are libraries or something that can help with the video transcoding and
saving of incoming fead's etc?

O ps. i have a lot of experience in Web/rails/ruby/sinatra development.
I am just asking because it is a very interesting topic! :smiley:

Thanxs for your insights in advanced!