Squuezebox 3 and iTunes library playlist


I finally jumped on the bandwagon. I'm running iTunes off my PC and just purchased a Squeezebox 3, though it hasn't arrived yet. I'm a bit concerned now after reading some reviews that it doesn't recognize iTunes playlists. Is this correct? Since I have 140 GB of music in Apple Lossless format I'm I going to have to create all new playlists? A bit confussed? Help!!! Thanks for responses in advance.
There's a review of the Squeezebox 3 in the current issue (No. 76) of UHF Magazine. They tested it with music streaming from their iTunes collection on a Mac computer. I don't think that the review mentioned playlists specifically, but they did note that the Squeezebox gave them control access to their full iTunes collection. However, they did note that they couldn't stream copy protected music. So if you have lossless files on iTunes, there is no problem. But if you have lossy, copy protected music downloaded through the iTunes store, it may not work.

By the way, they reported that the results were superior if you used the Squeezebox's digital output into an extenal DAC. Results were not quite as good if you used the Squeezebox's internal DAC, sending the analog output from the unit into a preamp.

I'm quite fascinated with this thing, although I've never used one myself. I am most interested to hear what other people have found using it. I think that products like this are the future (or part of the future) of audio.