The Flex 4 video classes all just wrap OSMF functionality, so it may be a potential OSMF issue or possibly some setting I'm not aware of.
Can you please file a Flex SDK bug at http://bugs.adobe.com/flex/ and include your snippet and I can take a closer look with the OSMF team.
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Not sure if you are watching the JIRA bug, but I posted an update:
From the Open Source Media Framework (OSMF) team:
So it looks like DVRCast support isnt fully implemented in Flex 4.0, but it is something we're definitely considering for a future Flex SDK release.
Thanks again for your help.
I have one last question. Is it possible to manually update the osmf in the Flex SDK to the current release? I've attempted several things but so far I have had no luck.