Just to clarify my comment (it's illegible in a single line)
I think the best answer is the comment by Mike Chambers in this link (http://www.judahfrangipane.com/blog/2007/02/15/error-2032-stream-error/) by Hunter McMillen.
A note from Mike Chambers:
If you run into this using URLLoader, listen for the:
flash.events.HTTPStatusEvent.HTTP_STATUS
and in AIR :
flash.events.HTTPStatusEvent.HTTP_RESPONSE_STATUS
It should give you some more information (such as the status code being returned from the server).