Live streaming is tricky. But, FMLE + Red5 is a cheap way to do it that gives you even more options than you'd have with with Flash Media Server.
I simply installed Red5 and the oflaDemo application. Then, I fired up Flash Media Live Encoder 3.2. I gave the URL of rtmp:myserver/oflaDemo to FMLE, with a stream name "myownstream".
To test viewing, I used the included Publisher demo application. I specified the "Location" as rtmp:myserver/oflaDemo and clicked "Connect". Then, I specified the "Name" as "myownstream" and clicked "Play". Magically, it worked!
I hope this simple tutorial can bootstrap you into live streaming with Red5.
