So after using Vaughn Whiskey's JTVPing tool I decided to select the server that had the best ping.
I was getting choppy results. Basically it would stream, then pause, stream, then pause. After selecting the 2nd best ping location all of my issues of stutter went away.
I am now able to stream clearly on Twitch.Tv at 480p (default bit rate setting). I have 50down/15up internet speeds.
I am still sad that Xsplit still does not work with the Roxio HD Pro though
At least Black Ops 2 has an option to turn on your web cam during league play though - so you can actually see your web cam and your game while you stream.