[Update 17.09.08 @ 11.36am]
Brenda contacted me last night (Hi Brenda!) to say this:
“The 1.1 update has a bug. You no longer can select your speakers in the settings section, it just disappeared.”
After looking into the issue, you’ll be pleased to know they only ‘relocated’ this feature! To get the ‘Speakers’ panel to show simply tap an album cover on the now playing screen. Above the play controls you’ll now see ‘Speakers’, and it’s then just a case of tapping that to get options for your remote speakers – I agree, it’s that well hidden, I would have thought the feature was taken out too!