With AirPlay, you'll be able to stream music or video from an iPad, iPhone, or iPod touch to any AirPlay-compatible device. At the moment AirPlay works only with AirPort Express units (for audio) and the new Apple TV (for audio and video), although Apple is licensing the technology to other vendors to allow them to sell AirPlay-compatible products - speakers, receivers, and the like. (iHome is one of the first companies to announce an AirPlay product.) Whenever you're listening to music in an AirPlay-enhanced app - for example, the built-in iPod app - under iOS 4.2, you'll see an AirPlay button. Tap this button, and any AirPlay-compatible devices on the same local network will appear in a pop-over menu. Tap a device, and your media is streamed directly to it. (If you've ever used Apple's Remote app to control iTunes on your computer, the process of choosing an AirPlay destination is similar to using the Remote app's Speakers menu to choose an AirPort Express for streaming music.)
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