Yes, don't upgrade if your old version works. I need to downgrade back to the 7.1 version for it to work again. It doesn't make sense at all. All I want is to listen to the music for free. I don't care about all the other functions.
Those who got LastFM working: did you insert a valid api key/secret that you applied for? I ask since Libre.fm works fine for my 8.1 install but I get a "Network connection error". I took the XML snipped posted earlier and modified it by only changing the old_streaming_api entry.
I tried downloading the XML file and changing old_streaming_api to 1 with 0.8.1 on an N900 (I figure that over WiFi would not violate the terms of last.fm), and I get a network error. This is with no key. I was hoping that this version would fall back to the working API. Is that not the case?