Last.fm is coming to the Xbox 360, which is great. But you're gonna need a Gold Live membership to enjoy it, and even then you'll be stuck watching video ads.
Silver members will get a 3-month, ad-supported trial. Gold members get full access to the service, but they'll also be stuck watching ads. To fully escape advertisements, you'll need to subscribe, which will also bring some extra features that have yet to be detailed. And there's no word on how much it'll cost, but seeing as a regular Last.fm membership is $3 a month, it probably won't be very much.
As to whether or not you'll be able to play Last.fm station streams in-game, well, they still haven't clarified that for whatever reason. Or when exactly this will all happen. Eventually, one's got to assume, they'll give us all of the details. [Kotaku via Joystiq]