You have made a fair point and to my ears so far, I cannot detect any differences given that I have converted all my files to Apple Lossless format using dbPoweramp
Having said that, I will conduct more listening tests with full sized cans and speakers to compare below:
1. onkyo HD player playing files stored on ipod touch storage with airplane mode set to on. This is to check if shutting down the wifi on ipod touch will yield better usb audio out performance
2. 8player wifi reading the same files stored on wireless hdd and check if the usb audio out is being affected
I am thinking the Hugo is so excellent that it will eliminate the noise, but I can only conclude if I listen to it more in different settings (probably quieter environment).
God, I wish I have more long weekends for me to geek out this stuff....