I could not get this stream to play on IPhone, VLC or Flash. I downloaded one of the .ts chunks from the cupertino playlist and it does not play in VLC. So there is something very wrong with this stream. What is the video and audio codec?
Interested in seeing a follow up on this as I too have been seeing this error recently. Not only in iPad, but iPhone as well. In my case I use my own dedicated Windows Server setup and also streaming with H.264 Baseline 3.0 and MP3 audio.