It's true that non-paying last.fm users in the US, UK, and Germany are
still allowed to stream radio for free, but this only applies to the
last.fm website and the official last.fm client.  Using the newest
Last.fm API, third party applications like Banshee are no longer allowed
to stream radio to Last.fm's free users.  Intentionally working around
the official API to do so would probably be a violation of the Last.fm
TOS (section 2.6): http://www.last.fm/api/tos

For more information, see comment 1 of this Banshee bug:
https://bugzilla.gnome.org/show_bug.cgi?id=601612

** Bug watch added: GNOME Bug Tracker #601612
   https://bugzilla.gnome.org/show_bug.cgi?id=601612

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https://bugs.launchpad.net/bugs/712070

Title:
  LastFm not working in Banshee

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