We ran some Kings of Leon tunes through the Orbit and it did OK. As we said in our earlier review of the Orbit iM237, while there isn't much bass, it isn't completely absent, which is all you can ask. It also sounds fine with movies (we streamed some stuff from Hulu).
Altec recommends that you adjust the volume on the source device from 85 percent to 90 percent of maximum and turn off any bass enhancement or EQ settings. We'd disagree on the first part, and suggest that the key thing is not to crank the volume too much or you'll be greeted with some distortion. (Volume settings are strictly at the source; the Orbit itself has no built-in volume control.)
It's worth noting that the sound does seem slightly better with this model. Maybe it's the straight digital connection via USB or the way you can angle the speaker with the kickstand, but things sounded slightly improved versus earlier models. Of course, the key is that it produces better--and louder--sound than what most built-in laptop speakers can deliver.
While we like this new model and can recommend it to laptop users who want a compact travel speaker that outperforms their internal laptop speakers, we think it's a tad pricey at $50. Altec Lansing's iM237 Orbit MP3 speaker initially had a list price of $40, but that product can be found for less than $30 online. Hopefully, with time, the price of the Orbit USB iML237 will also drift down, making it even easier to endorse.