Yep, same issue is occuring on my Evo... Looking forward to that update....

Jona... I am still having issues with XiiaLive giving me short duration and short spanned pauses in the audio. It just doesn't seem to have a buffer. The pauses and audio bursts are only a half to 3 seconds at a time, audio, muted, audio, muted, Etc.. And, the audio always picks up from where it left off. My buffer is set to 5 seconds, but even if I roll it all the way up, it still does the same thing, just takes longer to hear the audio if I set the pre-buffer to the same length. I have to sometimes stop the player, wait about 10 seconds and try to play again to get it to stop. Sometimes it takes more than once. I drive 31 miles to work everyday and this will happen at least once each way and not necessarily in the same place along the route. I also have it occurring in other places too and am sure it's related to cell tower switching.

As I have stated before, I should not have a dropout shorter than the duration of my buffers, but I do and therefore I don't believe the buffering is working. This is not an AAC thing, as I mostly listen to MP3 Shoutcast streams, including my own. 

This has been occuring since around the time Sprint put in that proxy server, but of course, I have that set to 0.0.0.0 and have since a few days after they did it. Unfortunately I wasn't using XIiaLive much befor that, so I don't know if one has anything to do with the other or not. Just trying to feed you all I think may help solve the issue.

I am having this same issue with MP3/Shoutcast streams on my Sprint EVO. I don't run 4G when driving, as the coverage is not contiguous and causes many dropouts since they don't have a seemless 4G to 3G transition. The stuttering and connection problems seem to be somewhat related, as I usually go from having really choppy/start-stop audio to having issues with trying to connect. When I get these constant "connecting" issues, I exit the program, cycle in and out of airplane mode and then go back to XiiaLive. Seems to work most of the time, but not always. Typically this is while I am driving, so it could be the time it takes to do what I am doing is also enough to get to another cell site that may have also remedied the issue had I not done anything. But I NEVER had this issue prior to the HTC firmware update.

I have changed the Proxies and am streaming again, but it seems like the buffer is not working. Sometimes I get a lot of starting and stopping with half-second long bursts of audio then about that long of silence and over and over... Seems to be when data coverage is weak or bad handoffs... I've never heard this before, just started happening after the update and proxy work-arounds.