Cool stuff, but the VNC issue sounds like a dealbreaker for me.
If using VNC causes the hissing and popping, it sounds like the USB traffic between the Z and the PC is causing the issue.. which means the USB cables aren't shielded enough? Maybe try USB->Cat5 on the Z and then run one cat5 drop through the car instead of all those USB cables. You'd at least cut out all the USB extensions.
Which machine is actually outputting audio? I assumed it was the PC.
Still, good job!
A quick and stupid question.. Did you try remote desktop instead of VNC.. Remote Desktop works quite different that VNC and not as much traffic - maybe that won't cause hissing noises.
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In all of the pictures except for the last 4 the sound is coming from the computer. In the last 4 pictures I used smbmount to mount the drive on the computer on my Zaurus, so the sound comes from the Z.
Laze might have come up with a solution by using rdesktop, I'm looking into it right now. If not, using shielded cables sounds like a good idea to try!
UPDATE:
After googling I found this for rdesktop and "device redirection":
"local" means "Bring to this computer"
"off" means "Do not play"
"remote" means "Leave at remote computer"
Example: -r audio:remote
Now I just have to install terminal services (I think) on my car computer and see if I can get this working. Maybe this will fix the noise!
UPDATE:
Crap, it looks like you have to pay for terminal services for win2k. Oh well, maybe I'll have to upgrade to xp pro...