Quietly mentioned in the release note of version 1.2 is the ability to play music files from remote storage in the background. I say “quietly” because this capability is not among the bullet list of features.
What this means is that for any music files such as MP3 or Apple’s AAC files stored in your iDisk account you can play them on your devices while you use your device for other operations. This makes streaming practical from Apple’s online storage. This new release brings this capability to iPhone, iTouch and iPad. You can stream music to multiple devices simultaneously.