My N3 just arrived in nicely sealed packaging. 2 people have said it does gapless so I'll give it a go.
Let us know Brian. I think it also depends on how you've ripped your music. I have one version of Pink Floyd's DSOTM that plays with a slight gap between tracks, but plays perfectly when I switch gapless mode 'on'. I also have a DSD of War of the Worlds that plays perfectly gapless regardless of the gapless mode in settings. Still wrapping my head around how gapless works, especially when you have a gapless album ripped to individual tracks.