It appears that the server with Wowza 3.6.4 installed, is not started.
I can play the stream from the server running 4.0.4 but it is poor quality while the same stream using RTMP seems okay.
To troubleshoot this issue please open a ticket by sending an email to support@wowza.com
Include a detailed description of the issue, a link to this thread for reference and a zipped copy of the following directories for both servers (3.6.4 and 4.0.4):
[Wowza-Install]/conf/
[Wowza-Install]/logs/
[Wowza-Install]/transcoder/
It would also be useful if you could try testing sample.mp4 as the test content to see if this has the same issues and provide a copy of sample_shorten.mp4 for us to download.