You run into Cross-Schema issue - which means that you are trying to open Media from http to local file share, which is forbidden in Silverlight. (Read the full msdn article). That's why you get "Network error".
You can debug your media exceptions if you handle the MediaElement.MediaFailed exception.
void MediaItem_Loaded(object sender, RoutedEventArgs e)
media.MediaElement.MediaFailed += new EventHandler<
void MediaElement_MediaFailed(object sender, ExceptionRoutedEventArgs e)
If we can be of further help, please let us know.
All the best,
the Telerik team
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