This week, Slacker Radio updated its free application (available here) for the iPhone and iPod touch. The app provides streaming access to over programmed 100 stations and lets users create custom stations based on artists or songs.

New features include the option to view song lyrics for Slacker Radio Plus subscribers. It also offers visual and performance enhancements, such as a larger album art view, a recently played stations folder, a streamlined interface, faster transitions from song to song and the option to disable sleep mode.

With this release, a number of users thought Slacker did away with the old "now playing" view which provides a song preview. In fact, there are now two of these views:

1) The original view, which features the current album art, a preview of the "up next" album art, the volume slider and the settings button.

2) A new "full screen" album art view, which eliminates the preview of the "up next" album art, the volume slider and the settings button in favor of the largest possible album art view.

You can toggle between either view with a "double-tap" on the currently playing album art to select the view you like best.