A reboot/restart often solves lots of computer issues. And the TOUCH is a computer (albeit tiny one). The Touch is in fact using a server when it plays files from your USB drive. It is not using a server running on a separate computer (that is, LMS). Instead it is running the server software itself (i.e., TinyLMS). So the Touch has a very limited amount of computer power, just enough to run a stripped down LMS server. And people do take advantage of some of this process power to try to improve the audio quality and/or add functionality. For example, Triode's EDO applet for the TOUCH adds the ability to play 24/192 files (normally touch plays only 24/96 files) and adds the ability to connect certain DACs to the TOUCH via USB rather than the S/PDIF or TOSLINK digital connections of the Touch. None of this is necessary for good audio of course as the TOUCH is a remarkable piece of kit right out of the box.
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