Where are you running Squeezeboxserver?
With Squeezebox system, multi zone usually means adding additional
squeezeboxes.  Assuming your "larger system downstairs" is a good audio
2-channel system, best bet would be to add a Touch down there.  You
would then have 2 Touch'es, each can connect to your Squeezeboxserver
either via wired ethernet (preferred for reliability reasons) or wifi. 
The Touch supports playback of 24/96 lossless files (FLAC for sure, not
sure if Apple lossless is supported "natively" by the Touch, but if you
are running your Squeezeboxserver on a reasonable PC (not your NAS), the
Squeezeboxserver can support transcoding from Apple lossless to FLAC if
needed).
You probably want a copy of ALL your music files available to your
Squeezeboxserver - this could be on a drive local to the
Squeezeboxserver PC, or I suppose could be available through your NAS.


-- 
tcutting
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