how far away is it from the source? my house is older and has lots of issues with wireless even though it's just a few rooms over.. it probably is buffering, because it's having a hard time maintaining a stable connection
I had the same problem as well. As soon as I changed some of the settings the music streaming worked just fine. I think it was having problems because with everything enabled and running, the device was overworked.
I don't enjoy the compromise
I'd like to have the device a little bit larger and able to handle everything it is supposed to do at one time; rather than have a device that is small but can only do a few things at once.
Everything else that Apple makes small works -- iPod ... Mac mini ... Powerbook ... etc.