In my case, no apps that stream via AirPlay work. I specifically use iHeartRadio and Sirius/XM all the time. They will not stream without drop-outs from my iPhone 4S. They work fine from my old iPhone 4 (now used by my wife).
What's really annoying me about all of this is that the blogs have not picked this up yet. It's a pretty serious issue and I keep sending info in on the "Tip" lines (emails, twitter, etc) and get no response. iLounge did post a story today about the AirPort update and said it fixed the problem. WRONG (according to posts I see here). Additionally, the AirPort update does NOTHING for me since I am not using an AirPort router. I have one linksys (G) router and my G router that came with my Verizon FiOS install. Connecting to either one results in this problem, yet (again) my iPhone 4 works fine.
Please, if you are having this problem, do two things:
1) Report the bug via the Apple Bug Reporter page. http://radar.apple.com/
2) Report the problem to iPhone related blogs (Tipb.com, AppAdvice.com, Gizmodo, Engadget, etc..). Let's shed some light on this outside of the Apple forums.
Also, manufacturers of AirPlay devices should be notified. I was contacting iHome and complaining to them before I realized the problem was not with my iHome iW1. I followed up with them and pointed them to this thread after I read through it.
Thanks!
Bob
Message was edited by: U2SockMonkey