SmoothStreaming module error: Error locating fragment for time . Element not found. (0x80070490).

Hello.

I am using smooth streaming for delivering live and ondemand content for quite some time. Today I tried to setup a pack of new offline publishing points and stumbled upon a problem.

When client (silverlight SmoothStreamingMediaElement, no matter 1.5 or 2.0) tries to start playback, it gets an error via SmoothStreamingErrorOccurred event with the following message:
"Failed to download 50 consecutive chunks for stream type Video - halting playack"

I enabled the failed requests log feature on IIS and saw that the request for manifest is handled without errors as well as requests for audio chunks. Requests for video chunks end up with error:

 I checked the ism, ismc and ismv files as well as I could. Can see nothing wrong inside. Ismv's playback normally in windows media player. They import into Expression Encoder (4.0 SP2 with codecs) without a notch. 
Files are produced by EE4 Pro SP2, h.264. I do not have access to the encoding preset but I can share an ismv and the manifests.

I tried both x86 and x64 IIS 7.5 and 8.0. IIS Media Services 4.1.

I guess that something is wrong inside the ismv but what's the problem?

Thanks in advance,
Eugene.