A communication system including a host transceiver, one or many device transceivers, and a wireless or wired link, in which encoded digital audio data and optionally also other auxiliary data are transmitted and received between the host transceiver and one or many device transceivers. The wireless link can but need not be a Certified Wireless USB (“CWUSB”) link, which utilizes WiMedia Ultra-Wideband (“UWB”) radio technology. For certain embodiments, packets of encoded audio data are transmitted from a host to a device or multiple devices over the wireless link utilizing a variety of data packet transfer methods, with the host adapting its algorithms dynamically to provide the digital audio content over a changing wireless error rate environment. The host intelligently controls the method of data transmission, including data encoding format, synchronization, latency, and transmission rate, in response to data transfer error information it detects or receives from each individual device in the system. Other embodiments are devices that employ audio-data-specific error concealment methods. Other embodiments concern host and device management of graceful muting and restart of audio on a device-by-device basis.