The icon on the XMB was just a http link to the mp4 on my local webserver running on my PC, that mp4 is the same mp4 that OBS was recording to on my PC. It works perfectly and would cast/stream in great quality, but you need to stop the recording.. which makes it kind of useless.
I think it would probably be possible to link to a fake MP4 that is filled with zeros, an mp4 has a fake long length like 4 hours, then fill in that with the video feed on the fly as you record, but I dont know enough to do something like that.