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Tune In Radio.

I also use TuneIn radio. It's got lots of stations. I think 40,000 (had 30,000 when I bought it several months back). It's iOS 4 friendly, with multitasking. You can record stations, you can find stations near you using GPS, you can browse by location, genre, etc. It's a very nice app, only $1.99 I think.
 
I highly recommend ooTunes This app is superb with the best customer support ever provided. Has many additional features that the other apps do not offer. If your favorite station goes down, report it and Mr. Woolley will have it back up in no time. You can record what you hear, offers alarm clock and there is just so much much more.

Hope that helps!:)
 
Try Fstream.... it is free. i saw it in a thread for favorite apps. Pretty good and you can record it too.
 
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