According to the Pocket Tunes website:
QUOTE
Pocket Tunes Basic $19.95
Pocket Tunes Basic provides playback of MP3, WAV, and Ogg Vorbis files, including background playback so you can play music while you use other applications, customizable skins, full playlist capabilities, album art, a graphic equalizer, and much more! Pocket Tunes Basic includes free updates to all future 4.X versions of Pocket Tunes Basic, when available.

Pocket Tunes Deluxe $37.95
Pocket Tunes Deluxe includes all the features of Pocket Tunes Basic and adds WMA and AAC/aacPlus playback, online music store support, crossfading, gapless playback, bookmarks, and Internet audio. Pocket Tunes Deluxe includes free updates to all future 4.X versions of Pocket Tunes Deluxe, when available.

Has anyone tested this with M4A album images produced using the free Nero encoder, via foobar2000?

I've been encoding as 64kbps HE-AAC v1 album images (with embedded album covers using Nero's tagging utility) for use in The Core Portable Media Player on my wife's Treo. But if Pocket Tunes handles chapter stops and can read the artwork, she would certainly prefer the nicer interface!

- M.