> Initially, it displays track 1 and shows the song's progress.  At some
> point (14 seconds into it, with my last test), it will stop updating
> progress on that song.

What are your screensaver settings?

While I can't reproduce your issue, I've seen some other wierdness on SB1: eg. 
it wouldn't display the correct menu when trying to get out of Now Playing mode 
using the left button, once the screensaver has kicked in. Can you see this too?

> I have reinstalled SqueezeCenter a couple of times, completely removing
> all traces of the former installation based on what customer support
> recommended, but that hasn't helped.

On OSX make sure you delete all Squeezecenter _and_ SlimServer related folders. 
And you only encountered this issue after upgrading from 6.x to 7.1?

> Customer support thinks that the Squeezebox itself may be defective,

I doubt this: it's all controlled by the application.

-- 

Michael
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