I just tried this camera in Wowza Server 2.0 and Wowza Pro 1.7.2 (same version as you are using) and it works for me. My Application.xml for 1.7.2 looks like this:
<Root>
<Application>
<!-- Uncomment to set application level timeout values
<ApplicationTimeout>60000</ApplicationTimeout>
<PingTimeout>12000</PingTimeout>
<ValidationFrequency>8000</ValidationFrequency>
<MaximumPendingWriteBytes>0</MaximumPendingWriteBytes>
<MaximumSetBufferTime>60000</MaximumSetBufferTime>
<MaximumStorageDirDepth>25</MaximumStorageDirDepth>
-->
<Connections>
<AutoAccept>true</AutoAccept>
<AllowDomains></AllowDomains>
</Connections>
<!--
StorageDir path variables
${com.wowza.wms.AppHome} - Application home directory
${com.wowza.wms.ConfigHome} - Configuration home directory
${com.wowza.wms.context.VHost} - Virtual host name
${com.wowza.wms.context.VHostConfigHome} - Virtual host config directory
${com.wowza.wms.context.Application} - Application name
${com.wowza.wms.context.ApplicationInstance} - Application instance name
-->
<Streams>
<StreamType>rtp-live</StreamType>
<StorageDir>${com.wowza.wms.context.VHostConfigHome}/content</StorageDir>
<Properties>
<!-- Properties defined here will override any properties defined in conf/Streams.xml for any streams types loaded by this application -->
<!--
<Property>
<Name></Name>
<Value></Value>
</Property>
-->
</Properties>
</Streams>
<SharedObjects>
<StorageDir></StorageDir>
</SharedObjects>
<Client>
<IdleFrequency>-1</IdleFrequency>
<Access>
<StreamReadAccess>*</StreamReadAccess>
<StreamWriteAccess>*</StreamWriteAccess>
<StreamAudioSampleAccess></StreamAudioSampleAccess>
<StreamVideoSampleAccess></StreamVideoSampleAccess>
<SharedObjectReadAccess>*</SharedObjectReadAccess>
<SharedObjectWriteAccess>*</SharedObjectWriteAccess>
</Access>
</Client>
<RTP>
<!-- RTP/Authentication/Methods defined in Authentication.xml. Default setup includes; none, basic, digest -->
<Authentication>
<Method>digest</Method>
</Authentication>
<!-- RTP/AVSyncMethod. Valid values are: senderreport, systemclock, rtptimecode -->
<AVSyncMethod>senderreport</AVSyncMethod>
<MaxRTCPWaitTime>12000</MaxRTCPWaitTime>
<Properties>
<!-- Properties defined here will override any properties defined in conf/RTP.xml for any depacketizers loaded by this application -->
<!--
<Property>
<Name></Name>
<Value></Value>
</Property>
-->
</Properties>
</RTP>
<MediaCaster>
<Properties>
<!-- Properties defined here will override any properties defined in conf/MediaCasters.xml for any MediaCasters loaded by this applications -->
<!--
<Property>
<Name></Name>
<Value></Value>
</Property>
-->
</Properties>
</MediaCaster>
<MediaReader>
<Properties>
<!-- Properties defined here will override any properties defined in conf/MediaReaders.xml for any MediaReaders loaded by this applications -->
<!--
<Property>
<Name></Name>
<Value></Value>
</Property>
-->
</Properties>
</MediaReader>
<Repeater>
<OriginURL></OriginURL>
<QueryString></QueryString>
</Repeater>
<Modules>
<Module>
<Name>base</Name>
<Description>Base</Description>
<Class>com.wowza.wms.module.ModuleCore</Class>
</Module>
<Module>
<Name>properties</Name>
<Description>Properties</Description>
<Class>com.wowza.wms.module.ModuleProperties</Class>
</Module>
<Module>
<Name>logging</Name>
<Description>Client Logging</Description>
<Class>com.wowza.wms.module.ModuleClientLogging</Class>
</Module>
<Module>
<Name>flvplayback</Name>
<Description>FLVPlayback</Description>
<Class>com.wowza.wms.module.ModuleFLVPlayback</Class>
</Module>
</Modules>
<Properties>
<!-- Properties defined here will be added to the IApplication.getProperties() and IApplicationInstance.getProperties() collections -->
<!--
<Property>
<Name></Name>
<Value></Value>
</Property>
-->
</Properties>
</Application>
</Root>
If this is some other strange network issue based on your network topology/setup/firewall/proxy then I am not sure how to help.
Charlie