Ok I thought it would make sense to break this out into a separate thread.

I have done the test I promised and also listened to the drop outs more carefully.

Firstly, I can rule out anything to do with my wireless LAN, the problem doesn't go away when I move my Rio to the hub the my DSL connection comes into.

Secondly, on listening to the drop outs more carefully it sounds line no audio is actually being lost, it just pauses for a fraction of a second. The time counter on the display also appear to pause when a drop out occurs.

P.S. It could be that it really is losing some audio, it just sounds like it is only pausing (my wife agreed that it sounded like it was pausing), because I can't see how it can keep pausing every few seconds, given that it is a live stream we are talking about.