After months of persevering and tweaking, I have given up on the tinySBS after seeing..."Local Server has encountered a problem and needs to shut down" for the 500th time :( So took my hard drive back up to my pc and sat down to listen....clear, demonstrable difference in the sound quality. Seems as though the attached drive adds quite a bit of noise into the system and/or the extra processing was degrading the sound. Overall highly dissapointed with Logitech for the tinySBS debacle but the damn thing sounds very good when run like a traditional SBox.
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