The error was

PROBLEM: Cannot open file for:

I copied 'Norah Jones - come away with me' flac files to the HTPC running the squeeze center and now it is playing..so look like some issue with getting it from NAS..weird

Other MP3 files work fine from NAS.

Any ideas?

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Samsung 65" 8500, xbox 360
Sunfire AV7702
Marantz AV7704
Sony UBP-X1000ES
M80s, VP180, QS8s, EP350