-From my understanding jitter is a time based issue that occurs when the
timing on the transmission side is unstable and the DAC uses this
unstable timing as a basis for conversion.-

That is true.

-I would presume the Squeezebox or XBMC in my case would read the FLAC
file into a buffer and then send it via the digital output to the
receiver where the DA conversion would take place. If this were the
case as long as the buffer was never empty the wireless-ness of the
transmission should not contribute to jitter in my opinion.-

What you may have overlooked here is there will be jitter on the
transmission interface to the DAC and it is this jitter (and this
jitter only) that can cause audible degradation, depending on the DAC's
jitter transfer function (i.e. how much jitter on the interface gets to
the DAC clock). In the case of a Benchmark DAC1, it's none, for other
DAC's it varies a lot, depending upon how well engineered they are in
terms of the SPDIF interface, the receiver circuitry, the clock
regeneration etc.

Andy.


-- 
Andrew L. Weekes
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