I can confirm this on the Nokia Lumia 822. Nearly every attempt to use my camera from the mydlink lite app yields a "Connection timed out. Would you like to reconnect? (1_0_2_3_0_FFF)" error. I have two Nokia 822 phones and they both give the same error, I can connect to the camera maybe 1 time in 100 tries. When the Win Phone app fails, I can grab my Nexus 7 and tether it to the Nokia 822, open the Android version of the app on the Nexus, and it works fine.
-E