I'll throw in my 2 cents. I ripped my entire collection into FLAC and 320k mp3 and could not tell the difference. In fact, comparing FLAC to the original CD, I was rather disappointed. Recently I ripped some CDs to AIFF and now I can't tell the difference between my SB3 and CD. I also tried converting FLAC to AIFF and for me it's amazing what I'm hearing. BTW, I have a SB3 connected through the coax to an external DAC. Before ripping your entire collection I would at least try a comparison to see what you think is best. AIFF does allow for tagging through iTunes and from what I've seen the SB3 can read the tags.
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