I have also been experiencing this issue with the latest version of Spotify on my iPod Touch 2G. Both offline and streaming cause the app to exit after a relatively short period of time (5 to 10min). The other new issue with this version that makes the crash even more frustrating is the inability to set the app to offline mode at all; regardless of any settings I try, Spotify attempts to log in when starting the app. Previous version of the app had neither of these issues and worked flawlessly as far as I could tell, is there a way to downgrade? Do I need to bite the bullet and upgrade to the latest hardware to solve these two issues?