I have an audio application which works great for iPhone 3.1.x
versions.
I am trying to upgrade it to iOS4.0 to work in multitasking en
Be sure that if you create the UIBackgroundModes item in Xcode (not by editing the XML manually) that you create the new key as type ARRAY, then add a new item (it will appear as "Item 0" by default) with a value of "audio". If you simply create a string key with value "audio", it will not work.
Re Woodmantech's answer: Xcode 3.2 changed the nomenclature a bit when adding this key in Xcode. The key is called "Required background modes" and Item 0 should be set to "App plays audio." Both are available through the GUI dropdown menu
You can add the key manually by edit the .plist file
<key>UIBackgroundModes</key>
<array>
<string>audio</string>
</array>