A modular test chassis for use in testing wireless devices includes a backplane and a channel emulation module coupled to the backplane. The channel emulation module comprises circuitry for emulating the effects of a dynamic physical environment (including air, interfering signals, interfering structures, movement, etc.) on signals in the transmission channel shared by the first and second device. Different channel emulation modules may be included in the test system depending upon the protocol, network topology or capability under test. A test module may be provided to generate traffic at multiple interfaces of SISO or MIMO DUTs to enable thorough testing of device and system behavior in the presence of emulated network traffic and fault conditions. A latency measurement system and method applies timestamps frames as they are transmit and received at the test module for improved latency measurement accuracy.