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Thanks Jona for the response.  However I do see XiiaLive listed under Settings...Applications...Running services as com.android.DroidLivePlayer.  It also says TagWidget4x1$TagActionService.  The SystemPanel app also lists com.android.DroidLivePlayer as a running background application.  XiiaLive is also listed as Running under Settings...Applications...Manage Applications.

Could it be the widget that is keeping it running?
Another thing:
  1. The url http://somafm.com/wma/groovesalad.asx is working again after exiting XiiaLive then getting back in
  2. I tried the url http://somafm.com/wma128/groovesalad.asx which played but somehow it plays the Groove Salad mpeg stream?!?
I tried the new WMA support with this url:
http://somafm.com/wma/groovesalad.asx

Couple of things I noticed though:
  1. On the "Favorites" screen it says "ASX" but not the bit rate
  2. It stopped playing after a few minutes and would not reconnect - got "buffering 95%" then "request timeout"
Would be really cool to have Tasker integration.