Sqeezebox 3, Apple Lossless or FLAC?


I have just ordered a Squeezebox 3 and wanted some advise how best to set it up. I am proposing to use iTunes on an iMac laptop and a Wi-Fi connection. What is the best way, in your opinion, to rip CD files, Apple Lossless or FLAC? What is, in your opinion, the best way to connect it to my processor (Krell HTS 7.1), RCA or digital? Any other advise you can offer on the set-up would be much appreciated.
mgattmch
Do you have a iMac or Laptop?

Digital for sure on the cables based on other audiophiles systems I auditioned.

FLAC for better storage management of files.

Think about using LaCie 500 GB or 1TB Networked Access Drive to free space on iMac for applications.

Leaning toward the Transporter but still have a couple of more things to research.
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.
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.