Thanks for the update. It seems to work fine for me. I can't wait for your favorite radio station idea. Like you said in the other post, the main issue is running out of buttons.
My simplest suggestion on that is to further extend your "Mode" idea. So, L/R switches between "Auto Seek (Hardware)", "Auto Seek (Software)", "Manual Seek", "Favorites", "Options', etc with whatever with the current mode is at the top of the screen (possibly with a subline and a change of help text at the bottom). That way you can have left/right be consistent for changing stations (and for Favorites, you can display on a subline the current station in the center and the former/latter favorites on each side so "88.3 95.7 [ 97.2 ] 98.6 102.1"); of course you could have it left/right to change modes and L/R to change modes, but it's harder to accidentally tap a face button. Also, it wouldn't be a bad idea to have a "lock" mode with a trivial "password"--select to lock and up, down, left, right to unlock.
Anyways, that's my handful of suggestions if you're interested. Really, I'm perfectly happy with the way it is now, but then I hardly use the radio.
PS - The mode about "Auto Seek (Software)" would involve a loop to seek through stations and using the signal strength to determine if there's a match. As kaio notes, the hardware seek is far from perfect and will readily skip over even seemingly clear stations. The other major advantage of a software seek is it offers more ability to cancel a seek instead of effectively having a locked up app. Having said that, I'm fairly certainly a software seek may be a good bit slower (hence why I suggest allowing the user to choose their option). :/