I had a few similar sorts of problems, basically static and drop-outs, when I tried to play WMA lossless over a wireless network (also at about 80% strength). I had a mix of network elements, but the wireless router was 11g. MP3s didn't have this problem. When i went ahead and ran the wire, the problems went away. i condluded that it was a bandwidth problem with lossless files. Turns out maybe I could have switched to a different lossless file format, from what you say. I have no idea if in geneal WMA lossless is less efficient than FLAC; of course it could be something about how they are handled in this implementation.
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