After some extensive research, I have found that almost all RTSP->RTMP "solution" providers use Wowza 2 to convert RTSP->RTMP. Thats it.
Once you tell them that you need anything else too, like to convert MPEG4 part 2 to MPEG4 part 10(H.264), they tell you that they cant do that.
Wowza 3, which will be released in October 2011, will have a transcoding module which which should be able to transcode the content in addition to RTSP->RTMP stream conversion.
other potential options are:
VLCplayer
mPlayer
FFmpeg
I am still researching and will update this topic once I am done.