I think you'll find the lag is more to do with your network than the squeezebox.

When you use the remote you are actually controlling the slimserver software on your computer, not the squeezbox itself.

I have a v1 squeezebox and when i upgraded my PC (switched to debian) and used wired ethernet to the squeezebox the lag dissappeared.

If I win a Squeezebox (and I really hope that I do) I will need to keep this in mind. I had planned on using WiFi connectivity, but I can utilize Ethernet as well.

Something I would like to also point out is that the slimserver plugin can be added to the Infrant ReadyNAS which we reviewed previously (http://www.thetechlounge.com/article/239/Infrant+R...)
The plugin can be downloaded directly from Infrants website (http://www.infrant.com).

that is quite possible. i did notice that it only lagged on certain operations, so maybe specific instructions require just a touch more network traffic than others. although, theorhetically, the amount of data that the device is sending can't be all that huge and with wireless G, the transmission speed as compared with a wired connection shouldn't be perceivable when sending small packets of data. i suppose there could have been some interference of some kind as well. either way, the lag was not anything to worry about.