@SJHart: Interesting, we've tracked it down to being an issue only on iOS 4.3, its a bug with the WebKit framework looks like. We've been testing with the next major update from Apple here and it was working fine. So, the next update from Apple will correct this. In the mean time we'll continue to look for a workaround.
We're going to be adding H.264 support as well, so that would work soon too. Any idea what the URL for the H.264 stream is? I'm going to look around now.