Here is the relevant portion of the log file with -d9:
Thread 1: Entering ws_dispatcher (Connection from 192.168.178.50)
Thread 1: got request
Request: GET daap://192.168.178.23:3689/databases/1/items/28961.mp3 HTTP/1.1
Thread 1: Read: Accept: */*
Thread 1: Adding header *Accept=*/**
Added *Accept=*/**
Thread 1: Read: Cache-Control: no-cache
Thread 1: Adding header *Cache-Control=no-cache*
Added *Cache-Control=no-cache*
Thread 1: Read: User-Agent: iTunes/7.0.2 (Windows; N)
Thread 1: Adding header *User-Agent=iTunes/7.0.2 (Windows; N)*
Added *User-Agent=iTunes/7.0.2 (Windows; N)*
Thread 1: Read: Client-DAAP-Access-Index: 2
Thread 1: Adding header *Client-DAAP-Access-Index=2*
Added *Client-DAAP-Access-Index=2*
Thread 1: Read: Client-DAAP-Validation: ED64BB3F3E6C4C0325A21A7558F3F489
Thread 1: Adding header *Client-DAAP-Validation=ED64BB3F3E6C4C0325A21A7558F3F489*
Added *Client-DAAP-Validation=ED64BB3F3E6C4C0325A21A7558F3F489*
Thread 1: Read: Client-DAAP-Request-ID: 1
Thread 1: Adding header *Client-DAAP-Request-ID=1*
Added *Client-DAAP-Request-ID=1*
Thread 1: Read: x-audiocast-udpport: 4695
Thread 1: Adding header *x-audiocast-udpport=4695*
Added *x-audiocast-udpport=4695*
Thread 1: Read: icy-metadata: 1
Thread 1: Adding header *icy-metadata=1*
Added *icy-metadata=1*
Thread 1: Read: Connection: close
Thread 1: Adding header *Connection=close*
Added *Connection=close*
Thread 1: Read:
Thread 1: Headers parsed!
Checking to see if connection matches close
And it DOES!
Thread 1: Connection type HTTP/1.1
: Connection: non-persist
Thread 1: Original URI: daap://192.168.178.23:3689/databases/1/items/28961.mp3
Thread 1: Translated URI: /databases/1/items/28961.mp3
Thread 1: Preparing to find handler
Thread 1: URI Match!
Thread 1: Time is 1172789174 seconds after epoch
Thread 1: Setting time header
Added *Date=Thu, 1 Mar 2007 22:46:14 GMT*
Added *Connection=close*
Added *Server=mt-daapd/svn-1498*
Added *Content-Type=text/html*
Added *Content-Language=en_us*
Thread 1: Using non-default handler
in main_auth
Checking url /databases/1/items/28961.mp3
Checking url /databases/1/items/28961.mp3
Dispatching auth for /databases/1/items/28961.mp3 to plugin
Checking url /databases/1/items/28961.mp3
Checking url /databases/1/items/28961.mp3
Dispatching /databases/1/items/28961.mp3 to daap/svn-1498
in main_handler
Checking url /databases/1/items/28961.mp3
Checking url /databases/1/items/28961.mp3
Dispatching /databases/1/items/28961.mp3 to plugin
Checking url /databases/1/items/28961.mp3
Checking url /databases/1/items/28961.mp3
Dispatching /databases/1/items/28961.mp3 to daap/svn-1498
Getting uri...
Mallocing privinfo...
Added *Accept-Ranges=bytes*
Added *DAAP-Server=firefly/svn-1498*
Updating Content-Type from text/html to application/x-dmap-tagged
Added *Cache-Control=no-cache*
Added *Expires=-1*
Index (null): offset 0, limit 999999
Tokenizing url
Found 17 elements
Checking reponse 0
Checking reponse 1
Checking reponse 2
Checking reponse 3
Checking reponse 4
Checking reponse 5
Checking reponse 6
Checking reponse 7
Checking reponse 8
Checking reponse 9
Found it! Index: 9
Executing: select * from songs where id=28961
Thread 1: Length of file (remaining) is 7065285
Updating Content-Type from application/x-dmap-tagged to audio/mp3
Added *Content-Length=7065285*
Updating Connection from close to Close
Emitting reponse header Content-Length: 7065285
Emitting reponse header Expires: -1
Emitting reponse header Cache-Control: no-cache
Emitting reponse header DAAP-Server: firefly/svn-1498
Emitting reponse header Accept-Ranges: bytes
Emitting reponse header Content-Language: en_us
Emitting reponse header Content-Type: audio/mp3
Emitting reponse header Server: mt-daapd/svn-1498
Emitting reponse header Connection: Close
Emitting reponse header Date: Thu, 1 Mar 2007 22:46:14 GMT
Entering config_set_status
Exiting config_set_status
Session 0: Streaming file '01 Overture.mp3' to 192.168.178.50 (offset 0)
Finished streaming file to remote: 7065285 bytes
Entering config_set_status
Exiting config_set_status
Executing: update songs set play_count=play_count + 1, time_played=1172789174 where id=28961
Rows: 1
Thread 1: Terminating
Thread 1: Freeing request headers
Thread 1: Freeing response headers
Thread 1: Freeing request vars
Thread 1: Closing fd
With thread 1 exiting, 1 are still running