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Meanwhile the AVS forums has an active thread called Lossless music on hard drive vs. CD which has some discussion of the Logitech/Slim Devices Sqeezebox which seems sort of similar to the Apple TV with more of a focus on music.
Does anyone here have experience with this device (or the more expensive transporter?
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I don't have experience with them as I'm still researching good USB DACs, but a good source of info is the audioasylum forums, especially the PC audio forum. They do get good comments though and they are a nice solution.
http://www.audioasylum.com/cgi/etv.mpl?forum=pcaudio
Rick - you really should look into ripping your music in a lossless format like FLAC using a bit perfect ripper like EAC and feeding that to your stereo. It sounds silly, but just the access to your entire library and playlists make it worth it, not to mention better sound (won't get into the vinyl debate - that really does rule but.....) Physical cd's belong in the basement or attic.