in my last post, Scott have written a comment "hmmm no". And this man know what he says. So its enough motivation to dig deeper into streaming and of course Silverlight media. My prior post describe some facts about Silverlight streaming on demand which ends up in a http progressive download by web server.
Now I am focus on real streaming which must be done by a real media server. Indicators for streaming on demand are fast forward or rewind. Or live continuous broadcasts via streaming, like TV news.
Microsoft offers in windows Server 2003 a media server with such a service. But I didn't find any silverlight application sample in the web which uses 2003 server and supports repositioning of timeline. Some Silverlight sites like channel9 have that option and they are using some mystic server named "Cougar". Cougar is the codename for Microsoft Windows Server 2008 Small Business Edition!!! No- not Longhorn.
Silverlight Streaming Service, which contains "msbluelight" in DNS Name, uses a media server "EdgePrism". Its not a Microsoft product. EdgePrism is made by LimeLightNetworks. And it supports no real streaming as defined before.
My summary is that Silverlight reals streaming can only be done with Windows Server 2008. Your options are: via web server or streaming service. For IIS 7 exists a bandwidth throttling module called media pack to reducing traffic.