RTSP playback does not work with 2.3 (Tried with Nexus S)

[aloka.mitra]

Steps to reproduce:
1) Provided some external RTSP link like "rtsp://stream.zoovision.com/documentary/gwgg.3gp" or "rtsp://stream.zoovision.com/Movies/vader_sessions.3gp" to MediaPlayer class of multimedia framework. Please note that even the local host RTSP link does not work e.g "rtsp://localhost:"+rtspPortNum+"/local.sdp".
2) It does not play and gives timeout error. Please note all above links works with MediaPlayer in all the phones (Nexus One, Droid) with API level 8 and lower.

Expected:
It should play external as well as local RTSP links.

Actual:
It does not play any RTSP link.

Part of the DDMS logs is:

01-05 06:12:09.687: WARN/AudioService(109): stream was not muted by this client
01-05 06:12:09.687: ERROR/AudioService(109): Could not get client death handler for stream: 3
01-05 06:12:09.800: DEBUG/MediaPlayer(2893): Couldn't open file on client side, trying server side
01-05 06:12:09.800: INFO/StagefrightPlayer(75): setDataSource('rtsp://stream.zoovision.com/Movies/vader_sessions.3gp')
01-05 06:12:09.996: INFO/ActivityManager(109): Displayed com.monsoon.androidplayer/com.monsoon.android.havaplayer.video.Video: +925ms
01-05 06:12:10.925: DEBUG/dalvikvm(109): GC_CONCURRENT freed 2027K, 56% free 5587K/12679K, external 6407K/7574K, paused 7ms+7ms
01-05 06:12:19.375: DEBUG/dalvikvm(2893): GC_CONCURRENT freed 774K, 47% free 4004K/7431K, external 9638K/11234K, paused 21ms+3ms
01-05 06:12:21.527: DEBUG/dalvikvm(1774): GC_EXPLICIT freed 310K, 58% free 2811K/6663K, external 1625K/2137K, paused 29ms
01-05 06:12:26.539: DEBUG/dalvikvm(780): GC_EXPLICIT freed 18K, 53% free 2537K/5379K, external 1625K/2137K, paused 38ms
01-05 06:12:30.933: ERROR/ARTSPConnection(75): err = 110 (Connection timed out)
01-05 06:12:30.933: INFO/MyHandler(75): connection request completed with result -110 (Connection timed out)
01-05 06:12:30.933: INFO/AwesomePlayer(75): ARTSPController::connect returned -2147483648
01-05 06:12:30.933: ERROR/MediaPlayer(2893): error (1, -2147483648)
01-05 06:12:30.933: ERROR/MediaPlayer(2893): Error (1,-2147483648)
01-05 06:12:30.933: DEBUG/VideoView(2893): Error: 1,-2147483648

Any help on what could be going wrong is greatly appreciated.