Sqeezebox 3, Apple Lossless or FLAC?

Seconding Sufentanil.

Especially if you are a newb, use Apple Lossless in iTunes - don't even spend a second fretting about what you are missing. You are buying into one of Apple's premiere products supported by a top staff of developers etc.

Probably the easiest thing is to A/B the audio and the SPDIF out. All things being equal (which they never are) I would expect that the SPDIF will sound better.

Note that either and or both the analog and digital outputs of the SB3 can be improved with an upgraded power supply or modding. Bolder Cable is the recognized leader, take a gander at his site.

Bamm!!

Squeezebox3 Article

You should be using uncompressed AIFF to take compression out of the sound equation--PERIOD.

If you have to choose between those two, FLAC sounds more like the original to my ears. Apple Lossless always sounds like something is missing to me.

Flac is also Squeezebox/Transporters native format.