It does work when the Soundbridge connects via daap.
I was using a linkstation (kuro-HG actually cause I bricked the linkstation playing with the kernel) but I decided to get a new cpu for my pc which turned out to be incompatible with my mobo so I got a new mobo and was forced to buy new memory and before I knew it I had a whole new pc – so I moved my hard drive from the linkstation and used the old pc as a server.
Interestingly when I switched to the PC I got better streaming of transcoded flac over wifi – somehow the extra cpu speed allows the thing to keep the wifi pipeline full and I don’t rebuffer. With the kuro-HG I had to be wired for lossless to work – it’s fairly close to the limit for 802.11b I guess.