Hi Jim, I hope you didn't feel like you have to defend yourself. In any way, yes, that sounds much like the audiophile who would perceive and value the advantages of lossless encoding. I have noticed that most other people who ask these questions overestimate their hearing skills and expectations. DZ-Jay pointed out that this is an Apple proprietary encoder. So should you ever move, you will have to encode again. But then, iTunes can transcode between supported codecs, and the conversion between Apple Lossless and AIFF should be painless, fast and, ahem, lossless. So not a big problem, no more hours, days and weeks of playing disk jockey once you have everything in iTunes. FLAC is the open source alternative, but it's not supported in iTunes, although a plug-in project is underway. Even if it works in iTunes, FLAC would still not be supported on the iPod if that is important for you. One question: Is the digital output as plug-and-play as the analog connection? I have never thought about this option, and it makes the AE much more interesting for me, although I haven't yet checked at what price range amplifiers with a built-in D/A-converter start. Any recommendations? (Similar to my preference for Apple I like to keep things simple in the audio area as well: Not a whole lot of buttons and lamps, just play that music and play it well.) Thanks, Björn