Reported by Colani1200 on XBMC4Xbox forums + email. http://www.xbmc4xbox.org.uk/forum/viewtopic.php?f=6&t=203&start=260#p31198
I think I encountered a bug with playlists containing shoutcast stream URLs. As soon as the playlist contains multiple entries, I can not play any of the streams using the xbmc4xbox remote. It is possible to navigate through the entries and select a stream, but it won't play it (although the app claims to do so). This is both for .pls and .m3u. The playlists work fine when I access them via the xbmc4xbox GUI.
You can navigate through the entries fine, however none of the streams will play. Instead, something you played back in the past will start (if any). Hope you can fix it.