Well, I'm certainly digitally bewildered. I've got a weird issue with the new TeraDak USB to S/PDIF converter. Occasionally, it'll drop out for a fraction of a second. Sometimes it's fine, and other times it's unlistenable due to stuttering. I suspect a USB issue associated with the 2009 Mac Mini because:
It is not a function of overall CPU activity. Both CPUs can be 100% occupied with an mp4 conversion, and sound can be perfectly smooth.
- The optical digital out straight into an S/PDIF receiver on the Buffalo never stutters.
- It seems to start after some USB mouse clicking.
The TeraDak USB is plugged directly into the Mini and doesn't go through a hub.
Another issue with the TeraDak is that sometimes it doesn't appear on the Sound Preference Pane until the USB cable is unplugged and replugged.
This is a long shot, but could there be some sort of ground issue that's messing with the USB? The Mini and TeraDak are on separate circuits.
There are a number of tricks you can try, look at the PureMusic site, they have recommendations for Mac settings. Using your Mac while streaming via USB is probably always going to be prone to some problems, the USB service is just shared by too many things. Do the drop outs occur if you are not using the mac for anything else? Also, try a different USB port.
As to the TeraDak not appearing unless replugged in, I think that's a Mac OS issue. My M2Tech Evo is the same, and the problem only occured after an update to the Mac OS earlier this year.
Regards