One of the drawbacks of the app, in my opinions, was that you could not fade out the music. In the update, you can now fade out the music. The fadeout occurs when you export the slideshow.
I am still not able to open the file in iPhoto. I have to use ImageCapture. iPhoto sees it as a corrupt file. After trying to open it in iPhoto, I needed to delete the video from my photo roll from my phone before iPhoto would open any files on my phone.