FMOD failed to initialize ... Error initializing output device.

When I use iPhoneUtils.PlayMovie to play a movie clip on ipod3 8g with iOS 3.1.2(3.1.3 also), the application will crash with log:

-> moviePreloadDidFinish()
-> moviePlayBackDidFinish()
Error initializing AudioSession(errNO:1768843636)

AudioSessionSetActive posting message to kill mediaserverd (226)
FMOD failed to initialize ... Error initializing output device. 

(Filename: /Applications/buildAgent/work/71ca6fec1b41cc30/Projects/../Runtime/Audio/AudioManager.cpp Line: 398)

2011-01-24 15:15:56.932 ballescape[269:207] _serverConnectionDiedNotification. Info -- notification=NSConcreteNotification 0x4a0c350 {name = AVController_ServerConnectionDiedNotification; object = <AVController: 0xa4ca40>}, AVController = <AVController: 0xa4ca40>, currentTime = 49.67
The referenced script on this Behaviour is missing!

(Filename: /Applications/buildAgent/work/71ca6fec1b41cc30/Projects/../Runtime/Mono/MonoBehaviour.cpp Line: 1695)

Unloading 2 unused Assets to reduce memory usage. Loaded Objects now: 717.
Unloading 2 Unused Serialized files (Serialized files now loaded: 0 / Dirty serialized files: 0)
Assertion failed: (m_Sound), function CreateChannel, file /Applications/buildAgent/work/71ca6fec1b41cc30/Projects/../Runtime/Audio/AudioClip.cpp, line 397.
Program received signal:  SIGABRT.
mi_cmd_stack_list_frames: Not enough frames in stack.
mi_cmd_stack_list_frames: Not enough frames in stack.
kill
quit

but if I touch screen to cancel the movie playing, there still log "Error initializing AudioSession(errNO:1768843636)" but not crash.

these crash bug don't happen on ipod4 with iOS 4.X.

This is possibly an issue with the AudioSrv service in Windows. Go to the TaskManager. Go to the Services tab. Find ‘AudioSrv’ in the list, right click and Restart it. Then restart Unity. Should fix it.

I removed from scene SoundSource with AudioClip located in Resources folder, reboot computer and it works brilliant. Do not hold clip which is referenced by SoundSorce in Resources or it children, move it to other folder.