This is the last message on this subject, I swear.
In addition to constant - albeit minutes apart rather than milliseconds - buffering on YouTube, the buffering plague has now spread to bluetooth reception on a portable speaker. Although my Desire S phone pairs and plays perfectly, my N7 drops out and buffers every 10 seconds or so.
There is definitely a buffering problem.
I am rapidly falling out of love with my N7. I bought my partner a Samsung Galaxy Tab2 for Christmas and that is just as fast and gives absolutely no problems at all - plus it has an expandable memory.
On my return from holiday, and still within warranty, this little baby is on its way back to ASUS. What a pity!!