FLAC or Windows Lossless for music archive?

Use FLAC, since it's supported by squeezebox on the hardware level, this allows you to seek forward/backward and jump to any point on a track. Where as Windows Lossless is only support in software and cannot perform such function.

Can someone update me or give me a few links? I'm familiar with the squeezebox, but never looked deeply into it due to misconceptions, no dire need to upgrade, among other things.
This thread (thanks all!) resparked an interest. I assume a squeezebox be run from a external hard drive (usb2.0? SATA?) to a DAC (how much does the DAC, good quality DAC help?). Any recommendations or pointing me where to go would be great!

I have a terrible tendency of scratching / loaning forgetful friends my CDs and this would be great!

The Squeezebox web site is http://www.slimdevices.com and they have an excellent users forum plus a wiki. Between those you can learn just about everything you'd need to know about the Squeezebox.

That said, a Squeezebox won't run directly from an external drive. It needs a computer of some type to run the server software. They have free versions for Windows, Mac and Linux that you can download and experiment with before you buy one of their devices.

I run a SB3 (now called the "Classic" Squeezebox). I use a dedicated Linux server to house the music (over 39,000 tunes). The SB3 feeds an external DAC (Lavry DA-10) which goes to the power amp/speakers.

It is an excellent way to fully access and enjoy a large music collection.

A final note. If you decide to run a music server system, make sure you keep backups of your music. Re-ripping thousands of CDs is not a project most would enjoy. I actually keep two backup drives with one of them off premises.