Your comments

No, it can't... if Gingerbread (Android 2.3) does not have the proper libraries, you aren't going to be able to play the formats.
For me and my Droid A855, it still cuts out when I'm driving in the car, but I haven't noticed anything overly bad.  It usually cuts out when I drop into a valley, so it's not XiiaLive so much as it's lack of signal.
This will not address issues with AAC streams not working in Gingerbread (Android 2.3)...
Look around on the forum here... you aren't alone. 2.3 Android (Gingerbread) has a mangled audio framework, and the XiiaLive devs have got people looking at it, and implementing a new streaming engine using libmad and libfaad. The next version slated for testing (soon?) will also support wma/mms streams as well as fixing the aac issues...
yea, but their app appears to be crap. You can't put custom stations in the app, and I'm not really interested in buying ANOTHER streaming radio app... Come on Xiia devs... I needs me a beta of the new version or something...
so, you're fixing the aac/aac+ issue and adding support for mms/wma?
You contact me if you need a tester. I use XiiaLive probably 10 hours a day every day to stream all kinds of stuff (shoutcast, AAC/AAC+, MP3, streams from VLC server at home, etc). If you use FFMPEG, will you have to share all the code you use because of the *GPL? Ooh, using FFMPEG will allow you to stream the ASF streams I've been hoping to see, and I can finally uninstall Radiotime. Last thing, do you have a 'donate' button if we want to send you guys some beer money your way?
I am noticing more audio programs like radiotime and A Online Radio including their own decoders (using libmad and libfaad). I have been able to flash CM7 builds and use the Mplayer program, but I miss using XiiaLive (mainly because the GUI is infinitely better). Are you guys working on an update to cope with these issues, or are we stuck? Because this looks not very high on the 'to-do' list...
Everything works now... I think it had to do with Cyanogenmod...