why is my 3rd Gen iPod Touch skipping high-quality bitrate tunes?

My 3rd Gen iTouch 64GB skips tracks a few times per 5 min for a second or so when it comes to high bitrate tracks. (320Kbps)

What the hell is going on? I have the latest version of iOS 4. I did not upgrade to iOS 5 because I would lose all data. This particular device can not get iOS 6 either.