Best compression format for PC Jukebox


I'm getting a Brick, Wavelength Computer DAC here real soon and will be using my laptop for the server. I have already saved most of my CDs for my iPod in AAC /128. I suspect I will want to save music files in another format and better quality. Will I need to purge the lesser quality files?
Should I use anothe computer...one for iPod one for server?

I've read some about Exact Audio Copy but have heard that it's a little comlicated.
Any suggestions?
HD space not an issue. I'm willing to get external drive for my Dell PC...any suggestions there?

Thanks,

MC
musicubed
My understanding is that .wav is as close to "native" format as you get when it comes to CDs. Compression can be lossless or lossy. Lossless compression is just that--means the original can be recovered bit-for-bit. Unless your processor sweats hard enough decompressing to mess up the timing, should sound the same, although I haven't done any iTunes comparisons. (All mine are .wav, but that is largely because I run in both Win XP/Apple environments, and .wav seems like the lowest common denominator).
Thanks Edesilva, I appreciate the advice.

Last night I did some critical listening with my latest PC audio toy, a Wavelength Brick. Doing some A-B comparisons with a Lucinda Williams redbook CD on the latest Marantz universal player (DV7600) as my other source, I found little difference between my Apple Lossless rip and the CD.

Tonight I'll try the WAV files of the same disc and see what differences that may yield.

BTW, I've read a lot of your other comments in the PC Audio forum and find your posts to be fairly helpful. Thanks again.
It is possible to make better copies on a computer - since less jitter. That is another reason why audiophiles are moving their redbook CDs to a hard-drive.

Redbook CDs are pressed, and do not sound as good as digital can be.

If you have a program that resamples to 24/192 like the program that comes with creative zen mp3, you can further improve the sound - sound becomes smoother, curing the digital edginess.

There must be other conversion program - you shouldn't have to buy the mp3 for the program, although i don't know of any at the moment. If others know of one, please post - does make a difference - all of my music files are 24/192 and sound better than redbook CD.