Thanks for the help on this.
So i checked out my activity monitor but I am not sure how to interpret these numbers. When things are working well, data received hovers between .5 and 30k per sec, data sent hovers around 75 and 125k. When iTunes "pauses" these numbers drop to nothing and then...
Here's a possible solution - I just tried this so I'm not sure if this did the trick...also seems like it is only relevant for tiger users.
http://www.macosx.com/forums/showpost.php?p=1099378&postcount=3
I am experiencing the same problem - itunes will freeze for a few seconds and either revert to paused mode or start up again. Like niblosis, if you check iTunes, the diamond is not moving and the time is not changing.
I am pretty sure that this is an issue with airtunes and the wireless...