Thanks to everyone posting info and thoughts on the Z1 - its really helpful.
I've been enjoying my Z1 for a couple of weeks but I wondered whether folder structures, tagging, art (and other "clutter") of WAV files impacted the sound (since it definitely does with the Walnut).
So I did a little experiment with 3 identical 16GB SD cards - loaded them up with the same albums (WAV files) with 3 options:
1) SD card with folders embedded in folders with tags and album art
2) SD card with no embedded folders and no art
3) SD card with no embedded folders, no album art and no tagging (removed via Foobar).
And the conclusion.......to me option 3) was significantly nicer sounding (clearer and less grainy/fuzzy, slightly more detailed and spacious).
Also - previously tried mp3 (320kbps) these sounded pretty bad to me on Z1 even compared to option1 (and option 1) was the poorest of the 3 options tried in "expt.").
Z1(like Walnut) sound quality does seem very sensitive to tagging and maybe even folder structure (embedded folders).
I really, really, really like being able to skip folders!!!!