Flashphoner supports Wowza Media Server 2.x, Wowza Media Server 3.x.
Since Wowza 3 release, Wowza team changed theirs license model for developer license.
Wowza Media Server 2.x developer license has 10-connect restriction.
Wowza Media Server 3.x developer license has such restrictions: http://www.wowza.com/developer.html
Restriction "Live: 1 stream in, up to 9 out" is not suitable for Flashphoner. Flashphoner requires minimum 2 publishing streams - incoming and outgoing.
This message in logs says about Wowza3 license restriction:
*** Hit license limit for publishing streams. Publishing stream is stopped. ***
Thus, you need:
Wowza2 with old developer license
or
Wowza3 with non-developer license. Example: 30 days trial license or $55/month service provider license