In my copy (Poweramp 2.05-build-488 Full Version) this works perfectly. Look in Settings > Audio Engine(*) > Audio Focus there are four controls that should control this behavior. HOWEVER, your phone may not be using the API for audio the way Poweramp implements these features. This works fine on my Droid Charge, but does not work for everyone. (*) which says "Crossfade, replay gain, buffer size, pause/resume on notification/call, etc." -- this is a CLUE) >