I can confirm that cross fading doesn't work here either.
This issue has been reported internally; however, because of the nature of this issue, it will not be at the top of the list of priorities for the developers.
I have tested with 1.1.0.0a. Crossfading does not work. This is a lower priority issue but we are working on it. I will submit a change request to chuck. Thank you for the testing and feedback.