I've personally not come across this problem as you've stated, where the older version of the player will work on some movies but not the newest one, so you'll have to be patient while we do some trial and error to try to help.
Here's the best way I know to find out if it is your player, and that's to test a link that is known to be active and working for someone else.
Try this link:
http://thebrownster70.110mb.com/qss/sz4/garf.html (it's working perfectly for me as of 5/30 1:50 pm EST)
Or this link:
http://thebrownster70.110mb.com/qss/new/horton.html (this one's hosted on ezyfile so it doesn't require refreshing and is always active, just click the 'Watch Streaming' button to get to the player, then as usually click play to start)
One thought, If you've tried any of the links on the lower part of
Mrbrownee's 1st post, those all require the Veoh Helper and if it isn't installed and running you will get the exact error you reported. The one's at the top of the list usually just give the error 'Not a Divx file' if it needs to be refreshed.
If you try the link above (today) and still get the same internet error then I would suggest try sadeyesbleeding's suggestion above. If you continue to have problems then reply back here (info on your system might be helpful at that point... like XP, Vista, Mac, what browser, etc) and we'll continue to investigate.