Yes, you must have hardware attached to play the full 320kbs audio.

Does anyone know why some files play fine, but others sound distorted when playing in offline mode. I originally thought these files were damaged, but played several in serato hardware connected and they were fine. But again other files were palyable in either mode.

Sometimes that just happens, Dj.Mitch. Some tracks sound better than others at 32kpbs, I notice it when I'm previewing in my offline player as well. As long as I can listen to them alright and as long as they sound great with my hardware connected, I don't really take much notice of it.
If the files were damaged, you would see the corrupt file symbol next to them instead of the Whitelabel.net icon.

I have had a similar situation with every whitelabel file i have in my library. They simply will not play in the Itch program. Although on my scratchlive program they have been playing fine. Any insight to this issue? ~A~

Hey ACN390,
Could you please elaborate - what do you mean by they won't play? Are they restricted by password? or do they simply not load?

What version of ITCH are you using? You need to update to 1.1, available here: www.serato.com

Dave,
You're 100% correct I assumed I had the latest version because my hardware and itch software are new. (about a month old.) Going to update all my laptops and check back in soon. Thanks. ~A~

i dont understand why people ask this question, it clearly states it in the window box before you continue to download the file u need the box connected or it will only play @ 32k

can I just check
when people are saying hardware, do you have to use the serato mixer to get 320
every track I've downloaded will be 32 unless I buy the serato mixer as well?

hardware = sl1 or sl3 or ttm57sl

Current Serato Scratch Live hardware is
» Rane SL 3
» Rane SL 1
» Rane TTM 57SL
» Rane MP 4
More info here: serato.com

Current Serato ITCH hardware is
» Denon DN-HC5000
» Numark NS7
» Vestax VCI-300
More info here: serato.com