I finally came across a solution for the Red5 live audio streaming delay problem... turns out, it is simply caused by specifying a buffer on the audio stream of the listening client... which makes sense!
The flash movie connected to the live audio stream will hold back on playing the audio until it has x seconds buffered... it can never get closer to real time than the length of audio buffered.
mediaStreamLive = new NetStream(this.red5Connection);
So, between having a fast hosting server, and minimal buffer time, we are now achieving near real-time audio transmission rates.
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