Thanks (once again) for your insights here. We are probably going about this the wrong way. We are including the ENDLIST tag. The stream is basically "live", so we may have the wrong format here. It would be awesome if these two/three changes gets this to work. It was my assumption that it would still "stream" a vod file. As far as the a/v sync -- I'll need to check on the PTS in the segments. My hunch is that they're not being copied from the original input file -- but start from 0. I didn't think to check that. Anyways...
Thanks again!