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The issue might return actually... :( I haver resolved it and I'll have an update out ASAP.
Please following the following instruction Fix #2:

This has helped many resolve their issues. About our own streaming engine we have already started that and our first support for now is Windows Media content.
Ok, now I understand exactly what you are talking about... :) The feature is there more to let you know your streaming stats.  I didn't implement this as a mean to keep track of data usage and costs... I thought it was just a cool statistic to have.  I can definitely add a reset button to those stats but I don't think we will remove or hide it...  Why do you particularly want this information removed? I assume that if you don't care about data usage than this information wont hurt... :) 
Oh... wait I think I'm lost... Are you talking about the meter on the widget? If you are, this shows the realtime internet speed.  So if you see a lot of buffering and you look at the meter you will see is low and orange.
Thanks for the long feedback! It's great :)

About the buffering question. Well internally the actual buffer is elastic, meaning it grows as needed internally.  The buffer settings you see for pre-buffer and buffer mean the following. 

pre-buffer length:
Gather this much music than start playback.

buffer length:
In case of data starvation playback is paused and it will only be resumed once it reaches the set estimated playback length, which is the buffer length.

So prebuffer is only valid at the start of the stream once you are playing this value is no longer looked at.  Once the player drops into buffering state it will get out once it gathers the buffer length.

Let me know if I made sense or not :P
Thanks for your feedback! So you would like an option to erase streaming statistics?
Thanks for the feedback!  In the development process I noticed that many asx playlists would contain mpeg links and not expected asf or wma links.
We are currently using:

Not sure if you are a developer but since you asked kinda.. :P

I'm wondering if this is a bug with Cyanogenmod.  I have a 4G phone and this logic works fine.  I might have to send you a test app if you don't mind...
I assume you are trying to connect and you are seeing an error that there is no network connection?