I tried to use the JW Player and FlowPlayer. Both had the same problem. When the server is an entry in a log file "[Wed Aug 31 11:13:10 2011] [error] [client 31st ..***] File does not exist: internal_error.html 'transmission breaks, players of the "hang". JW player can be (sometimes) forced to play by clicking on progress bar.
I try to watch the video itself. 1 user per month
I test file by wget. I got this message:
Connection closed at byte 94 208 623. Retrying.
I change PHP version to PHP 5.3 - the same effect.