I'm having similar issues during my morning and afternoon commutes. If I had to guess, I'd say that switching between cell towers while streaming over Verizon's 3G is the primary reason for otherwise perfectly streaming songs to cut out on me while I'm on the move (they don't cut out on me as much when I'm at long lights, which supports this theory). As Sindre says though, he's already working on an updated version of the app to fix this.
Another issue though, is when I'm at work. Whether I'm streaming over wireless or using 3G, it's nearly impossible to get any of my podcasts to play at all. I created a playlist with all of my shows and the app just flips right through all of them. Every now and then it'll play a bit of one, but not long after it cuts to the next, and the next, until the playlist is over. The podcasts I listen to tend to be long (anywhere from sixty minutes to three hours and beyond) and generally of a low bitrate, which may have something to do with it. I have no trouble playing any of my audio files from the web app. I realize streaming of normal songs is everyone's priority. Once that's stable, please have a look at this as well.
Here are some links to the the shows in question:
60 Minutes: The Full Broadcast
The /Filmcast
Film Junk
IGN Digigods
IGN Channel Surfing
HT Guys HDTV Podcast
IGN Keepin' it Reel
Filmspotting
If any of you can get even one of those files to play reliably in the Android app, let me know what settings you used for the account. I have two profiles I use on the go, one at 64kbps and another at 320kbps. Neither worked with the files linked on 3G or wireless.