there are 4 main steps (on each system):

1) change LMLM4 configuration (/etc/modules.conf) to capture in CIF mode
2) edit video server configuration to CIF (/home/admin/.mp4live_*)
3) generate .sdp file for another side of the link
4) sftp .sdp file to andother side

Details:

1)
edit file /etc/modules.conf to have the following:

options lmlm4-linvs default_video_stream=3 

2)
change the following lines in the .mp4live_rc_<this hostname> file

videoRawWidth=320
videoRawHeight=240

3)
run the command to generate .sdp file for client:

mp4live -f .mp4live_rc_<this hostname> --automatic --headless --sdp

4) 
transfer files
sftp <another hostname>
put <this hostname>.sdp
quit