Thinking about Laptop system - Newbie Questions


As an old timer (listening to 50% vinyl/50% CD), all this music server stuff is very new to me, but I am somewhat computer literate. I was thinking about building a nice little laptop based music server. Thinking about either a Logitech Transporter or Squeezebox Duet with separate DAC. I have a wireless router close enough to the 2 channel system so I can go either wireless or Ethernet.
Laptop is Toshiba with 4 Gb RAM, 340 Gb HD. I would use a stand-alone HD to store music.
So, I have a few questions: Transporter vs. Duet/DAC?
What format to store music? WAV, FLAC, etc.?
Can I still use the laptop while playing music?
Any other helpful hints?

Sorry for all the newbie questions. I am doing as much research as I can before I jump into this.

Thanks for any info.
smholl
thanks ckoffend. we have smilar taste. i use a krell fpb600c and wp7's. my front is much more humble as i have not gotten around to moving up. i still use my old theta casanova as a prepro and run my duet to a digital in. the system doubles as a theater with watch surrounds and center. good to hear your satisfaction with the duet/dcs combo. it supports my belief that we have reached the point where that type of configuration is the ideal digital source. not perfect yet, but ideal. thanks again for the reply and apologize if i have gotten off topic ...
Well, I decided to go with a Squeezebox Duet and Cambridge Dac Magic to start my music server adventure. It should give me a good base to start with. Now need to get a nice HD and back-up to store my tunes.
Thanks to all for supplying some great info.
Smholl.

You're going to love it. Here's what I know about the Duet from experience...

Ultimate Duet Settings:
Replay Gain – (off)
Turn on Audio – (always on)
Crossfade –( none)
Smart Crossfade – (none)
Crossfade Duration – (0)
Volume Control – (100% fixed)
Volume Adjustment – (none)

The best codec is Flac because the SB Duet supports Flac natively and allows you to use the fast-forward and rewind functions on the controller (with wav files those functions do not work).

Also, I highly recommend ripping with EAC, which you can download for free. I will be more than happy to "walk you through" the initial EAC setup.

Additionally, a good external linear power supply can be added as a tweak – check this out.

Good luck....and report back on how you (love) your new
welcome to the fun! i agree with 2chnlben, you will love it! also agree with his setting suggestions for the duet. as i posted earlier, i use a different ripping source and file form but either way you sill be fine. it comes down to what you are comfortable with, doubt you will detect an audible difference. enjoy!!
I have decided to use FLAC instead of wma lossless, since it is a native format for Squeezebox Duet. Using a trial version of dBpoweramp to rip and/or convert. EAC seems to be a little too complicated for me.