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And to add to Andy's post; I'd vote for three settings in prefs, Forward/Back buttons control one of the following, select from favorites, select from genres, select from members of a genre.
I have Winamp for Droid installed and it has a 'Control Headset' checkbox that gives Winamp priority over the headset controls. I can be listening to Xiia and if I press the play/pause button the last thing I was listening to on Winamp starts playing. If I turn that off I can control Xiia, but Winamp won't respond to either play/pause or forward/back.
MP3:High bit rate channels are unable to connect, low bit rate channels have a repetitive gurgle in the audio. It seems like the 'throttle effect' which this bug displays is stuck in the configuration until the bluetooth and wifi are turned off, then back on. Also broke search ability for first day. AAC: streams are working. This throttle effect.... An attempt at mp3 piracy detection that has gone wrong?