So I can confirm that this is definitely an issue. The issue is with any phone where the internal storage IS an SD Card. Allow me to explain:
I used to have a T-Mobile G2. The internal memory in that phone is treated as RAM/ROM. My SD Card there was located in /mnt/sdcard/ or as just /sdcard/. I just lost it over July 4th and had to buy a new phone, so I switched to a T-Mobile Samsung Galaxy S III. The GS3 has 16GB internal memory, but that 16GB is separate from the RAM/ROM because it's an internal SD Card. THAT memory is located in the phone as: /mnt/sdcard/ OR as /sdcard/. However, the expandable card is *actually* located in /mnt/extSdCard/.
So it's completely understandable how the Spotify app would assume that a location listed as "/mnt/sdcard/" would be our own expandable SD Card, but it's not correct. This explains why my G2 never had this issue.
I can also confirm that after a clean wipe of everything related to Spotify, I was able to downgrade, set the location of the sdcard (which I set to /mnt/extSdCard/SpotifyCache/). I then synced my smallest playlist to it. Then I upgraded through the market to the new version and then continued caching the rest of my playlists. Voila.
Link is broken. I found an old version online, but have not been able to test it myself because I finally got my cache working and don't want to risk it. If anyone uses this version and it works, please let us know here:
Yes - did that. Same issue occurs - I am online for a minute or two then it goes offline permanently. Any ideas appreciated - I just want to play my music on my phone like I used to be able to...
I had a think what else might have changed in my setup and I remembered that sync'ing did work initially in the new version. Then Virgin came and upgraded me to the new Netgear SuperHub router to resolve other infrastructural issues. So I went back to my original Netgear Router (NETGEAR WGR614v9) and it is now stable once more and able to sync (at least for the past 30mins and 100 songs sync'ed!!). So maybe we have an issue with wireless capability on my new router that is causing the online signal to dropoff shortly after connection is made.
I also note that following a deepdive of the wireless settings in the SuperHub I can see that I did not have the Wireless Settings on the recommended auto seek option - and that I had previously set the channel to '11'. However, I only came across this page after I took the SuperHub out of the equation and went back to the old world... so this may also have been influencing things.
Given that I only made these changes to my router config following the downgrade, obviously, I would need to test on the latest version to determine if this was really the root cause or if this scenario specifically relates to the old version.I count myself lucky that I could take a step backwards, but not everyone would be so fortunate.
That said I have reservations about upgrading again since having to re-sync 2500+ songs again isn't something I want to do. To think I have spent 12+ hrs trying to get this working..Plus the inability of the new version to play local tracks would be a step backwards IMHO. Bottom line, the new version looks better but at this point in time I'm going to wait it out...