Yes, the SQ can be affected by an isolation transformer. They're not all the same and the Radio Shack isolator is pretty cheap, so there's no guarantee the input winding will be equal to the output, but they do work. Usually, if an isolator isn't a good one (not 'good' in price or name brand, I mean from an absolute standpoint), it usually messes up the bass. When it's feeding a subwoofer, the level often drops below what was present before the isolator was used. I heard it when I did car audio and I have heard it in home theater/distributed audio systems. I have seen wireless subwoofer RF transmitter/receiver setups and they're made specifically so a ground loop won't occur when the sub can't be placed near the rest of the system or when the power for the sub comes with resistance on the neutral and/or ground.