To get started, go to the music category of the iTunes App store (in iTunes or on your iPhone/Touch). Find the Last.fm app and download it (for free). Learn how to use the initial release version of 1.0
Log in or signup to Last.fm and you’ll be presented with a fairly obvious selection of Last.fm functionality. Things with the red circle icon start streaming. You can navigate through the menus and go back with the button in the upper left.
Once you start streaming something, you’ll have access to the familiar Last.fm contextual items (love, ban, skip… tagging will be in the next version). You can also check out the artist bio, similar artists and events (particularly cool). If there are current events for the now playing artists, you can specify if you’re attending or not and go to a Google map for the event location.
There’s a lot you can do in this app, but the interface is pretty slick so hopefully it will all be pretty discoverable.
Some limitations, As of now this is available only for US, UK, Canada, France, Germany and Spain.
Secondly, there are no background applications allowed on the iPhone/Touch. What this means is when the user clicks external application that loads Safari, the music will stop and you’ll have to restart the app.
The app knows how to read lastfm:// links. That means if you’re browsing the Last.fm website on the iPhone and click a “play in software” link, the app will start streaming for you! It’s neat, you’ll see.

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