I just noticed that 4.0 is out so I downloaded it. Unfortunately, I still have that same problem reading ID3 tags. I'll play with it a little later to ensure that it's the exact same behavior I saw under 3.0 and not caused by a rogue invalid tag or something like that.
In the little playing that I've done, I cannot nail it down to embedded album artwork, or a corrupt v2 tag. I can seem to make the problem move further down the alphabet if I wipe v2 tags and album art, and then copy v1 -> v2.
I'll continue to monitor the skjukebox.com forum to see if others continue to have the same problem.
-pmc