Yes, VideoPlayer supports H264 coded media playing. You just need Media Streaming Server which can stream data in h264. Just connect to that Media Server and you are done.
I've installed H264 Streaming from code-shop.com. When I try streaming via Flex's VideoPlayer, it plays no problem but I can't seek to a specific point in the video. If I drag the seek bar from the start to finish, the video position changes in 10 second intervals (e.g. 0:00, 0:10, 0:20, 0:30, etc) rather than every second (e.g. 0:00, 0:01, 0:02, 0:03, etc).
Playing the same video in Windows Media Player and it plays (and seeks) perfectly fine. Any ideas?