Your comments

I get "playlist not found" when I try to open a .m3u-playlist exported from Mediamonkey.
I am opening the .m3u with Astro which sends it to XiiaLive 2.2.4 (Paid).

I get the same result on a stock Nexus One and a CM9 Alpha Nexus S.

Some of the radio stations in the playlist are paid (DI.fm Premium) but I am able to play them if I add the url manually as a favourite.

Also, if I go to their site (di.fm) and click a station there to open it as mp3 (the same stations/streams in the playlist mentioned above it opens up XiiaLive and tries to connect over and over and "stream engine init failed" us shown.
Oh sorry.
The app is Headset Interceptor and what it does is let me choose which app should have controll over the media buttons.
I have 8 different apps for music playing/radio and so on.

Headset Interceptor works great for me and I got this "error" the other day and as I really like your app (been using it for a long long time) I thought Id let you know.

Nexus S with Cyanogen 7.1.0 RC1 (Android 2.3.4)