Hi, Suganyanataraj,
The input formats that you can use will vary depending on the Smooth Streaming encoder you are using. For example, if you are using Expression Encoder, see the input formats in the first Product-Specific FAQ at http://www.microsoft.com/expression/products/Encoder_FAQ.aspx#ProductSpecific. For third-party encoders, such as those provided by Inlet, Envivio, etc. (see http://www.microsoft.com/presspass/press/2009/apr09/04-20SmoothStreamingPR.mspx?rss_fdn=Press%20Releases for a list of announced providers), you should be able to find similar information on those third-party Web sites. Note that the higher the quality (higher bit rate and/or less-compressed) of the content you start with, the better the Smooth Streaming video will look.
Smooth Streaming output will be as .ismv or .isma content, but you can also encode other formats (e.g., .wmv, .wma) in parallel for non-Smooth Streaming clients.
-Chris