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I reported this bug year ago!!! It was present and is presented still in WP7. Are they fixed it? No no no!
So don't wait forever...
I had it in WP7 too, but I assumed it was down to my dodgy phone. It'd be nice for them to get it fixed soon tbh!
I'm having exactly the same issue.
Launch the app, select artist or a saved playlist and the app instantly crashes.
If i repeat the process a few times the application eventually launches.
Any possible fixes known?