Music Licensing for Podcasts

The Association of Independent Music in the UK has agreed a music license for podcasting reports IT World:

The six month license lets signatories legally podcast a variety of U.K. independent repertoire. It meets a gnawing market need -- few podcasts are able to legally use released tracks.

It's an intelligent step. I'm still not clear on what the legal position is for the use of music in podcasts. I've heard conflicting reports (possibly because of my odd trans-jurisdictional status) ranging from the use of any non-podsafe music is liable to incur royalty fees on a per download basis, to the normal 30second bumps etc you'd use on the radio, are exempt. As you know I play it safe by only using music I've written myself (though this has obvious drawbacks as my listeners will attest)