It looks like Slim Devices is updating the SlimServer software to integrate with Pandora's music recommendation service. Pandora's service allows you to enter a name of an artist, and it will create a "radio station" of music that is related to that artist. The new software will automatically make that radio station available for your Squeezebox.
I went to Pandora's web site, and tried their flash version of their service. I liked the recommendations. I don't have a Squeezebox, but I would like to listen to these stations in iTunes or on my iPod.
Pandora normally only allows you to play the music through a Flash application. But now that the music is being played through the Squeezebox, either there is a mp3 stream available, or the SlimServer is transcoding the audio from the flash app to mp3.