Image Compression indicates the amount the data is to be compressed for transmission - the higher the compression percentage is set the poorer the picture quality.
Compression is necessary to speed the transmission of the picture.
You can play with the settings to see whether or not the picture quality is acceptable. The maximum frame rate is basically a throttle control for the administrator to control the output of the server. The higher the frame rate the closer the movement in the picture will be to real life. Broadcast television uses 30 frames per second while cartoons may be as little as 9 or 11 frames per second - the higher the setting the higher your bandwidth usage per viewer. Real life processors though, have a much reduced frame rate over Internet connections.