Sony has a network update available (today) for the HAPZ1ES server/player. It upgrades the firmware and adds new features. You also must update your remote software on your iPad or Tablet. It all took less than 5 minutes. Seems to be working fine, so far.
As far as I know, no it can't download Hi-Rez files off the net. You must download to main computer and then transfer to the Sony via the wired or wireless Ethernet.
You can merge folders via the remote control. I forgot which app, but I had a cd with a song missing which was on a separate disk It enabled to merge the 2 folders into one. You will have to experiment with the remote to get it right but it does work.
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