Sirius XM has updated its XM SkyDock app (free, App Store). for the iPhone and iPod touch with background audio support. The new update adds background audio for all iOS devices running 4.0 or later, allowing anyone to listen to their favorite shows while using other apps.
The update also improves dock transitions when used with iOS 4 devices and addresses a bug that displayed a “Dock not detected” error message even when the device was docked. The app needs a Sirius XM account and the XM SkyDock hardware ($130)