Ok folks, so in the email that Apple sent me today, they asked for me to get the crash logs and the console output that occurs when the airplay issue happens. So, I just opened up the iPhone config utility and opened the console. Then, connecting to my iHome iW1, I saw a bunch of errors start popping up. Here's a (rather large) snippet of one block of errors. Notice the bolded areas.
Nov 16 19:43:30 Bobs-iPhone SiriusXM[8352] <Warning>: SiriusXM 1.6 (iPhone; iPhone OS 5.0.1; en_US)
Nov 16 19:43:30 Bobs-iPhone SiriusXM[8352] <Warning>: SiriusXM 1.6 (iPhone; iPhone OS 5.0.1; en_US)
Nov 16 19:43:32 Bobs-iPhone SiriusXM[8352] <Warning>: Response - Stop
Nov 16 19:43:32 Bobs-iPhone profiled[8348] <Notice>: (Note ) profiled: Idled.
Nov 16 19:43:32 Bobs-iPhone profiled[8348] <Notice>: (Note ) profiled: Service stopping.
Nov 16 19:43:33 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:33.372359 PM [AirTunes] Selecting AirPlay device 'iHome iW1 E52A9C' (A/V)
Nov 16 19:43:34 Bobs-iPhone dataaccessd[53] <Notice>: 147af0|EAS|Error|connection died with error Error Domain=ASHTTPConnectionErrorDomain Code=502 "The operation couldnt be completed. (ASHTTPConnectionErrorDomain error 502.)" 0xdac06d0
Nov 16 19:43:34 Bobs-iPhone dataaccessd[53] <Notice>: 147af0|EAS|Error|ASPingTask failed: Error Domain=ASHTTPConnectionErrorDomain Code=502 "The operation couldnt be completed. (ASHTTPConnectionErrorDomain error 502.)"
Nov 16 19:43:34 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:34.749979 PM [AirTunes] Starting AirPlay device 'iHome iW1 E52A9C'
Nov 16 19:43:34 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:34.750203 PM [AirTunes] Connecting to AirPlay device 'iHome iW1 E52A9C' at C8D5FEE52A9C@iHome\032iW1\032E52A9C._raop._tcp.local.%6, 1 of 3
Nov 16 19:43:34 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:34.828748 PM [AirTunes] Connected to AirPlay device 'iHome iW1 E52A9C' at 192.168.1.14:1024 (from 192.168.1.7:52830)
Nov 16 19:43:35 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:35.908152 PM [AirTunes] Started AirPlay device 'iHome iW1 E52A9C'
Nov 16 19:43:35 Bobs-iPhone wifid[28] <Error>: WiFi:[343183415.913198]: Client mediaserverd set type to background application
Nov 16 19:43:37 Bobs-iPhone SiriusXM[8352] <Warning>: SiriusXM 1.6 (iPhone; iPhone OS 5.0.1; en_US)
Nov 16 19:43:40 Bobs-iPhone SiriusXM[8352] <Warning>: Response - Stop
Nov 16 19:43:41 Bobs-iPhone kernel[0] <Debug>: AppleBCMWLANNetManager::checkRealTimeTraffic(): set roam parameters: counters Rx:103 Tx:15627
Nov 16 19:43:45 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:45.009561 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:43:47 Bobs-iPhone SiriusXM[8352] <Warning>: SiriusXM 1.6 (iPhone; iPhone OS 5.0.1; en_US)
Nov 16 19:43:48 Bobs-iPhone SiriusXM[8352] <Warning>: SiriusXM 1.6 (iPhone; iPhone OS 5.0.1; en_US)
Nov 16 19:43:50 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:50.150749 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:43:51 Bobs-iPhone lockdownd[21] <Error>: 2fff1000 __handle_watcher_service_start_block_invoke_1: Stopping heartbeatservice for host 30183334-690578287212287296
Nov 16 19:43:51 Bobs-iPhone lockdownd[21] <Error>: 2fff1000 kill_host_connections: Closing 0x283830 host 30183334-690578287212287296 for pid 8334, our fd=17, their fd=4
Nov 16 19:43:51 Bobs-iPhone lockdownd[21] <Error>: 2fff1000 kill_host_connections: Closing 0x2b8d00 host 30183334-690578287212287296 for pid 8337, our fd=18, their fd=4
Nov 16 19:43:51 Bobs-iPhone lockdownd[21] <Error>: 2fff1000 kill_host_connections: Closing 0xc688bd0 host 30183334-690578287212287296 for pid 8332, our fd=10, their fd=8
Nov 16 19:43:51 Bobs-iPhone com.apple.mobile.lockdown[21] <Notice>: Could not shutdown SSL connection: -9806
Nov 16 19:43:51 Bobs-iPhone SpringBoard[15] <Warning>: Error: Connection interrupted
Nov 16 19:43:54 Bobs-iPhone lockdownd[21] <Error>: 2fff1000 __handle_watcher_service_start_block_invoke_1: Stopping heartbeat service for host 30188737-99976244834713128
Nov 16 19:43:54 Bobs-iPhone com.apple.mobile.lockdown[21] <Notice>: Could not shutdown SSL connection: -9806
Nov 16 19:43:55 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:55.298552 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:43:57 Bobs-iPhone SiriusXM[8352] <Warning>: Failed To start
Nov 16 19:43:59 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:43:59.364100 PM [AirTunes] ### AirPlay device 'iHome iW1 E52A9C' set-volume error: -6722/0xFFFFFFFFFFFFE5BE
Nov 16 19:44:00 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:00.417905 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:44:05 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:05.560462 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:44:07 Bobs-iPhone SiriusXM[8352] <Warning>: Failed To start
Nov 16 19:44:10 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:10.697487 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:44:13 Bobs-iPhone SiriusXM[8352] <Warning>: SiriusXM 1.6 (iPhone; iPhone OS 5.0.1; en_US)
Nov 16 19:44:15 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:15.839057 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:44:17 Bobs-iPhone SiriusXM[8352] <Warning>: SiriusXM 1.6 (iPhone; iPhone OS 5.0.1; en_US)
Nov 16 19:44:18 Bobs-iPhone UserEventAgent[12] <Warning>: Unable to cancel system wake for 2011-11-16 19:44:08 -0500. IOPMCancelScheduledPowerEvent() returned 0xe00002c2
Nov 16 19:44:18 Bobs-iPhone UserEventAgent[12] <Warning>: Unable to cancel system wake for 2011-11-16 19:44:08 -0500. IOPMCancelScheduledPowerEvent() returned 0xe00002c2
Nov 16 19:44:19 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:19.381827 PM [AirTunes] ### AirPlay device 'iHome iW1 E52A9C' set-volume error: -6722/0xFFFFFFFFFFFFE5BE
Nov 16 19:44:20 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:20.978848 PM [AirTunes] ### Keep alive taking too long to send
Nov 16 19:44:23 Bobs-iPhone UserEventAgent[12] <Warning>: Unable to cancel system wake for 2011-11-16 19:44:08 -0500. IOPMCancelScheduledPowerEvent() returned 0xe00002c2
Nov 16 19:44:23 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:23.723465 PM [AirTunes] ### Error with AirPlay device 'iHome iW1 E52A9C': 65/0x41
Nov 16 19:44:23 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:23.724253 PM [AirTunes] Quiescing device 'iHome iW1 E52A9C'
Nov 16 19:44:23 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:23.725619 PM [AirTunes] Deselecting AirPlay device 'iHome iW1 E52A9C'
Nov 16 19:44:23 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:23.725696 PM [AirTunes] Restoring quiesced device 'iHome iW1 E52A9C' after deselect
Nov 16 19:44:23 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:23.725734 PM [AirTunes] Stopping AirPlay device 'iHome iW1 E52A9C'
Nov 16 19:44:26 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:26.756618 PM [AirTunes] ### Timed out waiting to stop...see <radar:8506433>
Nov 16 19:44:26 Bobs-iPhone mediaserverd[6669] <Error>: 19:44:26.800 <0x3ef16ce8> AQMEIOManager::FindIOUnit: error '!dev'
Nov 16 19:44:27 Bobs-iPhone SiriusXM[8352] <Warning>: Failed To start
Nov 16 19:44:31 Bobs-iPhone kernel[0] <Debug>: AppleBCMWLANNetManager::checkRealTimeTraffic(): --set roam parameters: counters Rx:103 Tx:16484 FLow Control
Nov 16 19:44:31 Bobs-iPhone kernel[0] <Debug>: AppleBCMWLANNetManager::checkRealTimeTraffic(): now 187108.788930 num entries 4
Nov 16 19:44:33 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:33.891603 PM [AirTunes] ### AirPlay device 'iHome iW1 E52A9C' keep-alive error: 60/0x3C
Nov 16 19:44:33 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:33.891854 PM [AirTunes] ### AirPlay device 'iHome iW1 E52A9C' teardown error: 32/0x20
Nov 16 19:44:33 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:33.891991 PM [AirTunes] Disconnected from 192.168.1.14:1024 (from 192.168.1.7:52830)
Nov 16 19:44:33 Bobs-iPhone com.apple.mediaserverd[6669] <Notice>: 2011-11-16 07:44:33.892164 PM [AirTunes] Stopped AirPlay device 'iHome iW1 E52A9C'
Hopefully this info will help them.
Bob