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Generally though you will want SC2 to run at your native monitor resolution with either a full size or half size resolution for your stream.
Bitrate The bit rate is the approximate amount of kbps that the codec will try to produce.
Frame Rate The higher the frame rate, the more frames the codec will need to process and the smoother your stream will look. Some streamers use 20 FPS and as long as it's a consistent 20 FPS this is fine, however below 20 FPS your stream will become noticeably jerky and unpleasant to watch.
Others take a more conservative approach and use a low resolution with a high frame rate and bit rate.
First of all, streaming is tough on your connection.
Any packet loss or jitter can cause your data to arrive late at the streaming provider which will discard it due to the timestamp being late.
Dropped frames are also bad as if a key frame is dropped, it can take 5 - 10 seconds before another key frame is generated, during which time your viewers will have no video.
On the flip side, too low of a bitrate and your stream will look terrible.