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
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.
dBpoweramp is a good choice.

If you haven't already done so, at night, turn off all the lights, sit in your listening chair - just you and your backlit controller (and of course your remote for volume - I wouldn't use the controller for volume control) close your eyes...just a minor movement from your index finger is all that is necessary to advance to the next album or song title. You only need get up to refill your medicinal - unless you keep it handy.....