IIS Transform manager, all encoding jobs are failing

We are using Transform manager and expression encoder to create smooth streaming and http live streaming content.

Transform manager is not able to handel encoding jobs quite well. Most of the encoding jobs are stuck in WorkQueue\Configuring\ folders.
Moreover, at times encode jobs just gets stuck in running queue and it doesnt even starts encoding.
Consequently, other encode jobs in waitting queue doesnt get promoted to running queue as we have set number of concurrent jobs to 10

Even though it starts encoding well, it lasts for around a week and then all the jobs starts failing


Server Software-
Server version : Windows Server 2008 R2 Standard SP1
IIS version : 7.4
Expression encoder version : Expression Encoder 4 pro
Transform manager version : IIS Transform Manager 1.0 Beta

Server Hardware-
Manufacturer : IBM
Model : System x3500 M3
Processor : Intel(R) Xenon(R) CPU X5650 @2.67 GHz  2.66 GHz
Installed memory(RAM) : 12.0 GB
System Type : 64 bit Operating System


Thanks