After much trials and errors, I have the RPi set as a hotspot. I used a script I found so all credit goes there. Not sure this is the best way to go about it, but until its baked in better, this seems to work. The script is very configurable for different connection scenarios.
So for my test setup, I have the Pi connected via Ethernet so I can configure the wifi to be a Wifi hotspot and basically stand-alone. The scenario could be many, but for me I wanted to be able to take the Pi wherever and connect to it via phone over wifi and stream music from the Pi without the Pi being connected to any other network. I tried first with an ad-hoc network setup but I could not for the life of me get that working.
Links and instructions coming....Stay tuned