I periodically have this problem with my Touch too. Never had wifi issues before I inserted the Touch and 7.6.1 about a month ago. Since then, the same problem you describe. What I do, after initially (and futilely) fiddling with firewall settings, router settings, port forwarding, eliminating 3rd party plug-ins and lots of other stuff, is simply unplug the modem and router from the wall, wait 20 - 30 seconds, then plug them back in. Voila no more audio dropouts. This shouldn't be happening, and it never did with my SB3 in the system, but something about the Touch and the new software update (7.6.1) has made my wifi connection finicky.
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