I realize that I'm replying to a old post, but I just ran into the same issue myself and this is what comes up when I search for this. It turns out to be quite simple, but hard to figure out for me.
To get background audio you need to do two things:
1) In your plist (in Xcode, choose Target->Capabilities), enable the BackgroundMode flag for "Audio and Airplay"
2) before you start using audio, do this:
[OALAudioSession sharedInstance].audioSessionCategory = AVAudioSessionCategoryPlayback;
(you may want to look at some of the other AVAudioSessionCategories, there might be a better fit).
I'm not sure if there is another more low-level background mode, but this was enough for me to get audio to continue when the phone is locked or if you're switching to other apps.
joel