Sockets and policy servers

Hi I am having some trouble using sockets. In my previous builds with unity 2.6 there were no problems but now with the requirement to use a policy server on the server end I am having intermittant problems.

I have used the policy server program supplied with unity but frequently the client application still complains about getting an empty stream from the policy server. The connection is being made to the policy server and it is sending out the policy but it doesn't seem to be receieved sometimes by the client application. So it takes a number of retries before the connection is made. (My application tries to reconnect at a regular interval)

It is not the server rejecting the connection.

SocketPolicyClient14: Incoming GetPolicyStreamForIP
SocketPolicyClient14: About to BeginConnect to ###.###.###.###:843
SocketPolicyClient14: About to WaitOne
SocketPolicyClient14: Socket connected
CrossDomainPolicyManager caught an exception while checking endpoint ###.###.###.###: System.ArgumentException: Policy can't be constructed from empty stream.
  at MonoForks.System.Windows.Browser.Net.FlashCrossDomainPolicy.FromStream (System.IO.Stream originalStream) [0x00000] in <filename unknown>:0 
  at MonoForks.System.Windows.Browser.Net.CrossDomainPolicyManager.RetrieveFlashCrossDomainPolicyFrom (System.String host, Int32 port, Int32 timeout) [0x00000] in <filename unknown>:0 
  at MonoForks.System.Windows.Browser.Net.CrossDomainPolicyManager.FlashCrossDomainPolicyFor (System.String connecting_to_ip, Int32 policyport, Int32 timeout) [0x00000] in <filename unknown>:0 
Can't connect to server ###.###.###.###:####

Is it more likely that an empty stream is being sent? ie. a bug in the policy server program from unity? or should I be looking somewhere else. My code worked before and the documentation says that if I run a policy server then there should be no modifications to my application code.

Thanks in advance.