Dave,
You are way overcomplicated this.  :)
You need to get your Touch functioning reliably as a simple setup on
you existing network.  Forget using the Touch's USB or updating power
cables for the time being.

Get your Touch playing reliably from your SBS server on your computer. 
Play a few albums and try streaming some (any) internet radio.
Once you can do this without studders, stops, drop outs, re buffering,
etc.. then move on to further customizations.


-- 
toby10
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