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We present Xstream-x264: a real-time cross-layer video streaming technique implemented within a well known open-source H.264 video encoder tool x264 for on-line video quality evaluation experiments. Xstream-x264 uses the transport protocol provided indication of the available data rate for corresponding adjustments in the video encoder. We discuss the design, implementation and the quality evaluation methodology utilized with our tool. We demonstrate via experimental results that the streaming video quality greatly improves with the presented cross-layer approach both in terms of lost frame count and the objective video quality metrics Peak Signal to Noise Ratio (PSNR).