I've update the RadioKit SDK demo XCode project so it now also demonstrates how to perform background audio play and audio control under iOS 4.
Source code for the sample project can be found here:
http://stormyprods.com/products/radiokit.php
The key point to adding support for background audio play under iOS 4 is to add a new entry to your app's info.plist file. You must add a new key called UIBackgroundModes and add the value audio.
If you want you app to also support remote control of the background audio (either via headphone controls or the audio controls on the background app taskbar) you must also add support for remoteControlReceivedWithEvent:. You can see how this was done in the sample MainViewController.m file in the RadioKitDemo XCode project.
Please note: background play is not supported under the simulator. This is a limitation with the simulator, not the sample XCode project.
If you are unfamiliar with the RadioKit SDK, you can read more about it here. It is a static library which greatly simplifies the process of handling streaming audio on the iPhone and iPad including support for pause, rewind and fast forward of the live audio stream. It is licensed on a per-project basis with single project licenses priced at $100 (US dollars). There are no royalty fees. Volume discount pricing is also available.