hmm - thanks Radoslav, i will give this a shot. i see you have implemented an new control for this to pull the data video file from. i setup a test page with nothing on it - pasted 2 video players with this code
'z-index: 10000 ! important;position:relative;top:1px'
>Loading the player...</div><br />
this was after i configure web.config to show actual extensions. also the links to the image were found by browsing to documents/library and click the embed link and then copy/pasting to the jwplayer code. this method did not work to iphone/ipad but works fine in all web browsers. android played it because i think after android 2.0 or 2.2 flash player is included on that device.
the other way i did it was exactly as above but instead of pulling the video from the uploaded library i just put a file in the server like http://localhost/videos/file.mp4 and linked to that and it streamed to the iphone/ipad just fine. same file btw.
i will try using what you've taken the time to put together and see if i can make it work. i'll let you know and thanks for helping with this as i feel it is very important and i know many others will benefit from this as well.