Sindre -
I installed the latest Android build from the link you provided and, awesomely, I am no longer experiencing the long pauses between songs while in sleep mode on my Nexus One (2.1-update 1). Nicely done!
I was able to introduce a small, ms stutter in playback when I initially put the phone into standby by hitting the power button. But since then, I have taken it out of standby, added something to the queue and let it go into standby both ways (hitting power, timing out) and playback has been perfect. In fact, I think it may have been a coincidence that the stutter happened when putting it to sleep. It may have, instead, occurred when receiving an email notification with a "clear" notification shade. Only hazarding a guess though...
But just to be clear, the Android app is working really great for me now that the long pause between songs is gone. I sent my PayPal donation a few minutes ago.
Thanks again.