A dedicated server won't necessarily do anything for the sound quality per se, but with the Touch not having to strain it's small internal processor and it's even smaller onboard memory, things will run much better. When I got my Touch a couple of years ago it only took me a few hours before I decided to ditch the Touch's onboard server for a computer. With a library of over 58,000 tracks (most ALAC), the Touch just couldn't handle it. Plus I discovered a few plugins that are really helpful that I couldn't use with the Touch's internal server. So while the files themselves won't sound different, without the quirks of the Touch's internal server, it may "feel" like they are better. If you know what I mean.
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