I took your setup block and pasted it into a test page (http://qa.jwplayer.com/~abussey/703-hls.html) and it’s working fine for me, pre-roll ad and all.
I also left primary: html5, which doesn’t matter in 7.0.3 anyway because this new version is stricter about respecting the order of your files, so if the HLS stream is first, it’ll play it first, even if it has to render in Flash.
The only thing I can think of when looking at your code is the fact that you are referencing the stormtrooper.css in the beginning, which you shouldn’t have to link to at all, the player should handle all of the skinning as long as you include the “skin: ‘stormtrooper’” line in your code.
I would suggest trying to remove that and see what happens.
It looks like it’s an error with your ad tag. If you take the ad tag, which I pasted below, and paste it directly into both our ad tester (http://demo.jwplayer.com/ad-tester/) and Google’s tester (https://developers.google.com/interactive-media-ads/docs/sdks/flash/vastinspector), it fails due to a network error.
Ad Tag – http://adserver.cox7.com/www/delivery/fc.php?script=bannerTypeHtml:vastInlineBannerTypeHtml:vastInlineHtml&zones=pre-roll0-0%3D83&nz=1&source=&r=R0.023106331005692482&block=1&format=vast&charset=UTF-8
I would suggest contacting whoever handles your ad server to troubleshoot the tag.
Please let me know if you need any more help or have any other questions.