Ted Patrick appears to have stumbled across a bit of a sore spot in what Microsoft calls its "Windows Live Streaming Service" -- it turns out to be nothing more than progressive download over HTTP. It even "streams" FLV and SWF files as long as you give it a .WMV extension ;)

If this is confirmed that is just a ludicrous marketing mistake, how could they possibly expect this to go unnoticed and who had the brilliant idea of marketing this at IBC as a breakthrough "streaming" solution?

Read more: http://www.onflex.org/ted/2007/09/flex-and-flv-in-microsoft-streaming.php

[update] SWF/FLV playback example has now been removed by Microsoft