The most important post is http://onlyzq.blog.51cto.com/1228/558800
If you are working on ubuntu, and install the nginx from nginx source (not the default one), the flv module is auto installed. The yamdi part seems not necessary. I didn't find any problem without convert the video file.
By following that post, I only set the limit rate part in nginx default.conf. The other parts are nice to have but not necessary.
To compile the modules for nginx please refer to:
1. http://69.168.53.49/Modules and http://wiki.nginx.org/NginxInstallOptions
2. http flv stream module in nginx: http://69.168.53.49/HttpFlvStreamModule