The app definitely seems toast.
However connecting from one of two locations, either through the browser with the Air IP (works great) or from the startup connection.

When i connect to the Air via Android, it brings me to a 'login' page, even though there is no login. It brings up the Air UI and i can use it directly without doing anything else. There is an option on this login page to "use this network as is" which refers to the fact the network doesn't have internet access (again as mentioned i need to have my cellular data off or i do not get this login page).

Unfortunately after fiddling with the Air tonight with the iPhones, we are stuck on the issue noted earlier. The Air shows up as an Airplay speaker waiting to be setup but not as a wifi point.
The only thing i haven't tried is deleting the user data in the Air but that was already all done the day of the updates to 2.09.

"Those who preach the myths of audio are ignorant of truth."