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The wlan card when running causes (electrical) noise that corrupts playback quality. When running wired, the wlan card is shut off in the Classic and Duet.
Also, if you are using a lossless format such as flac, expand that format at the server to PCM before sending it to the Squeezebox.
In my systems, all sound and video devices are wired, no wireless. Storage hard drives also are noisy (both electrical and mechanical) and one of the advantages of the SqueezeBox is to kep that noise elsewhere than the listening environment.
Also, if noise is such a big issue inside the receiver, then why isn't it more popular to replace the switching regulators inside of it? I think there are three of them inside, but correct me if I'm wrong.
Those interested in optimizing the sound of the SB Touch can try this one: http://soundcheck-audio.blogspot.com/p/squeezebox-touch-great-base-for-network.html
I realize it is fashionable to dump on wireless, but I have used a Transporter for years with a wireless link running hi-res FLAC files (24/96) without dropouts, re-buffering or stuttering. My server is an Atom-based PC running Vortexbox. I am running a Touch in wired mode, and a Boom wirelessly. No difference in performance.
I had the same experience as whanafi for over a year...than last week I had a ton of out of town guests over for a party and TP started stuttering. I was so embarassed. Trying to show off my hifi. Now it is back to working flawlessly. I am going wired.