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Good point, but had the glitches at full rate too.

When I first tried the bitrate reduction trick, it did not work... Eventually I noticed the text above the selectbox for bitrate, saying that it could not find my lame install. After installing lame, it worked much better.
I've also noticed some glitches when it tries to scroll long filenames, am currently fooling with those settings.
I can also cause glitches by scrolling too quickly through my "artist" list (for instance). I assume it's swamping the Ethernet pipe, or the server.
An interesting point is that if you ask the RIO, it's hardy working:

nc 10.0.0.101 5000
uptime
12:01pm up 3 days, 12:01, load average: 0.00, 0.00, 0.00

...Makes me think the limitation is the poor old 10Mb ethernet connection..?