The video is h.264 Baseline 4.1, which might not work in a few older IPhone 3g models, but will work in most iOS devices.
You can probably just reduce the frame size to be recognized as Baseline 3.
The problem is you are using developer edition, and it has very short time limits on live http streaming. You can get an eval license that does not have this limit at http://wowza.com/eval.php
Richard


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