The HLS is supported on Android since version 3.0. Until the Honeycomb the H.264 and AAC was supported, but there was only RTSP streaming protocol. The HLS and MPEG-2 TS not (see here) were not supported.
Porting the ffmpeg to the Android platform could be a solution for that (LGPL sources ara available). I am however looking for a ready made solution with SDK, customizable HLS player, etc. There is one here, but I would like to know if you do not know about other solutions.
Thanks STEN
You may find the http://vov.io/vitamio/ libraries very useful. They allow you to use HLS feeds (I've tested and use the library in production apps).
One thing to note however, don't try testing on an Emulator device, as it will not work, you will need a real device for your testing.
Hope that helps.
Warm Regards,
Shabbir
-- EDIT --
Just editing this answer to let people know that the Vitamio url has changed - and also now you don't need to download a separate "helper app" from the PlayStore or the vov.io website - you can now just incorporate everything from the downloads/instructions they provide.
The new site is http://vitamio.org/