I am making some progress here.
The stream is starts with mplayer BUT for some reason the camera view has to be open in the web browser:
mplayer -nosound rtsp://user:pass@ip:554//live3.sdp
MPlayer svn r34540 (Debian), built with gcc-4.7 (C) 2000-2012 MPlayer Team
mplayer: could not connect to socket
mplayer: No such file or directory
Failed to open LIRC support. You will not be able to use your remote control.
librtsp: server responds: 'RTSP/1.0 401 Unauthorized'
rtsp_session: unsupported RTSP server. Server type is 'unknown'.
STREAM_LIVE555, URL: rtsp://user:pass@ip//live3.sdp
Stream not seekable!
file format detected.
Initiated "video/H264" RTP subsession on port 40808
Initiated "audio/PCMU" RTP subsession on port 42760
MPlayer interrupted by signal 2 in module: demux_open
demux_rtp: Failed to guess the video frame rate
VIDEO: [H264] 0x0 0bpp 0.000 fps 0.0 kbps ( 0.0 kbyte/s)
FPS not specified in the header or invalid, use the -fps option.
==========================================================================
Opening video decoder: [ffmpeg] FFmpeg's libavcodec codec family
libavcodec version 53.35.0 (external)
Mismatching header version 53.32.2
Selected video codec: [ffh264] vfm: ffmpeg (FFmpeg H.264)
==========================================================================
Audio: no sound
Starting playback...
Unsupported PixelFormat 61
Unsupported PixelFormat 53
Unsupported PixelFormat 81
Movie-Aspect is undefined - no prescaling applied.
VO: [vdpau] 1600x1200 => 1600x1200 Planar YV12
V: 17.9 110/110 29% 3% 0.0% 0 0
However both 3 streams what I get is complete garbage, its all gray with some dots displayed then stream closes in like 3 secs.
I would note the difference down here between the 3 streaming outputs:
live1.sdp
Initiated "video/H264" RTP subsession on port 51286
Initiated "audio/PCMU" RTP subsession on port 48320
live2.sdp
Initiated "video/JPEG" RTP subsession on port 49728
Initiated "audio/PCMU" RTP subsession on port 38444
live3.sdp
Initiated "video/H264" RTP subsession on port 50104
Initiated "audio/PCMU" RTP subsession on port 44016
Also even this was unreliable. Sometimes it started sometimes not so I have tried it over with the latest 2.2.4 VLC for Windows on a machine which was on the same subnet with the IP Camera (no firewalls or anything between them to block traffic).
For stream1 and stream3 I get blank screen but VLC keeps streaming for stream2 it gets interrupted quick.
As of Codec VLC says:
stream0 : Video H264 - MPEG-4 AVC (part 10)
stream1 : Audio PCM MU-LAW (mlaw) 8000Mhz
I still don't know if the role of the open webpage is to actually activate the 3 streams or it sets up certain ports for rtp traffic, nevertheless I still don't have a good working RTSP live stream.
Further ideas?