Hello,
Sorry i totally forgot to mention i was using Logic Pro (8.0.2). What is your system? I have a G5 2x2ghz and a white 2ghz C2D Macbook.
Tried all the stuff in this thread, the network display in activity monitor still shows network dips at the same time as the audio drops so deffo a ethernet issue. But not sure if it's Logic or the one of the systems.
Cheers
Paul