The touch doesn't have the processing power to seek the data off a large drive. Probably better to use sd cards If you do not want to use your pc. (put some play lists on a sd card, probably 2 gig max. I haveonly put one cd on an an sd card and had no issues. A jump drive should do the same). A hard drive would need to use it's own power, as the touch does not have the auxiliary power to run the hard drive. The HD isn't a drop out issue, it's a data seek issue. Best use is off a pc. I run wireless, love it, sounds great, and I have never had a dropout.