In this situation the iTouch is just working as a platform to run the
iPeng remote controler software. The music doesn't go through it in any
way, so the fact that its an Apple device is irrelevant. The iPeng
software will talk to the Squeeze Box Server you are using (either on
another computer or the one built in the SBTouch) over a WiFi network.
The music data goes from the server to the SBTouch directly, bypassing
the iTouch, which only sends control information.

(boy is that confusing having a Touch control a Touch!)

John S.


-- 
JohnSwenson
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