Well it looks like everyone was right on this.
The smarttop will play high def files from USB sticks and SDD with no problem. I used a 32/192 file and although mplayer automaticaly down sampled to 16/96 it played fine. More importantly for me 16/44.1 and 16/48 wavs play all day without a hitch.
When playing streams ajusting the buffers really does help but ulimately the dreaded cache not filling message appears at some point.
The problem is that the smarttop is chewing through bits quicker than it gets them! The playback speed is running 2.4% high. And that's from local files as well streams.
To check
Code:
speaker-test -c2 -f440 -tsin -r44100
This should be concert pitch note A. It's not. Reduce to -f429 and a true A is heard.
Another check is with mplayer the track playing time is misreported - 4 minutes actually takes around 3m 54s
Final check and (imperfect) solution is to play streams with the -speed option.
mplayer -speed 0.976 somestreamname.
Most of the players have some form of speed option e.g. mpg123 uses --pitch (use -0.024)
The speed ajust allows 320k streams to play totally reliably - 5 hours is my longest test so far.
This is still not bit perfect audio of course but that may be one for the iMX53!