Casey, Shaw Cable has moved up to 1080P for their HD, I am not sure if this 1080P is just for movies with their on demand stuff as I suspect or if they are in fact upscaling their signal of HDTV to 1080P as well, haven't spent much time investigating the situation. I know the networks are broadcasting in 720P or 1080i depending on the network.
I don't think I have ever noticed an extra gap when listening to music streamed through the 3808, but I seldom listen to entire cd's, I usually just play all tracks and let them come as they may.