Hey all,
I gave in a while back and just used Darkredz StageWebView and VideoPlayer ANE to get around this. It's been quite a long time and I'd really love to know the underlying reason as to why such a basic and vital attribute isn't wired into the AIR SDK. But alas to this day, as the documentation clearly states:
Note: This property is not supported for H.264 video in AIR 3.0 for iOS.
This makes me a sad panda. Has anyone found a workaround beyond the above mentioned ANE?