I have tried running HP Velocity 2.1.3r22809 on the server side (full Windows 7 vm) and HP Velocity 4.4.0 version 2.1322531on the ThinPro T520. It did not make a difference the audio is still breaking up. It is the same behavior where audio starts out clear then becomes extremely choppy then it may recover then break up again within the same stream. I beleive I have ruled out the backend infrastructure by using a Windows 7 laptop as the endpoint for the ICA/HDX connection, audio is clear and remains clear.
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