Just to help anyone who wants to use IIS 7.5, Expressions Encoder 4 Pro, and IIS Media Services 4 with their Roku(s). Roku does support the m3u8 output given by IIS for iOS compatibility. However, I could not get video streams to play reliably if at all, but the audio was always there. Even when you only have one stream (single bitrate) going to a IIS publishing point, the M3U8 file by IIS provided, for example http://%server%/%stream%.isml/manifest(format=m3u8-appl).m3u8, points to multiple other m3u8 streams based on the bitrate. If you open the m3u8 file in the example listed above in a text editor, you can copy the references quality stream and paste that into your roku app, xml file, etc, for playing on your roku device. The new stream link will be http://%server%/%stream%.isml/QualityLevels(%bitrate%)/manifest(format=m3u8-appl).m3u8. This will fix any problems the Roku has playing live streams from the IIS server, however, you will lose the adaptive streaming ability offered by the IIS server that does work with iOS devices and silverlight correctly. This is not a problem if you have bandwidth sufficient for the stream you single out. Not sure why, but the Roku had constant problems trying to sort through the adaptive streams when referencing the initial m3u8 file. With playback debugging on, it would always report the network speed under 1mbps and even setting the stream to not automatic would not fix the playback problems. Once pointed directly to the stream with the desired bitrate, it played perfectly and correctly will identify the network speed.
Also, the current version of Expressions Encoder 4 Pro incorrectly identifies the bitrate of the audio stream to the server at 1.4mbps, but it will still play correctly. EE4 SP1 will fix this.