The Pandora app for the iPhone has just been updated to version 1.1 and it brings with it several impressive changes. Most impressive is the inclusion of stereo streaming over WiFi. 
Updates and new features or Pandora for iPhone 1.1 include:
+ Stereo over WiFi – Pandora stations now play in high bitrate stereo when using Pandora over WiFi. This makes an iPod touch the perfect companion to your living room stereo. Just dock and play.
+ Station Resume – when you’re using Pandora and switch to another application, or take an incoming phone call, the music will resume right where you left off when you start Pandora back up. It’s not as good as background listening (which isn’t currently possible on the iPhone) but at least you won’t miss anything if you need to hop out to another app for a minute.
+ Search Auto-Complete – as you type an artist, song or composer in the station creation screen we will offer suggestions in real time as you go.
+ Station Sorting – view your stations either by the creation date or alphabetically.
+ On Phone Registration – users that are new to Pandora can now complete account registrations on the iPhone and iPod touch.
+ Settings Panel – swap your Pandora login without reinstalling the app.
I’m currently testing out this app–and it looks promising, folks–and will have a full review of it on Monday.
[via Pandora Radio Blog]
It appears that one needs to update his touch to version 2 in order for it to work. For those of us who want to stay on a jailbroken 1.1.4 (for obvious reasons) are there instructions to install Pandora manually (using WinSCP, etc)?
You can klisten to music in the background on the Iphone 3g just play musice from the ipod section then use any other app it works for me so it should work for you all too.