[MonkeyK]

I just ordered my Squeezebox2 which works natively with FLAC (SlimServer sends FLAC and Sqeezebox2 decodes it).

One thing that was a little intimidating was how to get started with reripping all of my music to FLAC.  In case anyone else in intimidated, the following link will show you how to set up EAC so that ripping from your CD to FLAC is nearly as simple as possible:
http://www.hydrogenaudio.org/forums/index.php?showtopic=30959

For anyone that archives their music on a PC, FLAC is the way to go.  You can see Slim Devices' reasoning here:
http://wiki.slimdevices.com/index.cgi?HowtoBestAudioQuality
(see the section on file format)

[jakepunk]

Thanks for the link!  Based upon this forum, I too, have ordered a Squeezebox2.  I am re-ripping my CD collection right now using Exact Audio Copy.  I had previously ripped it to FLAC using Grip on Linux, but the anal-retentiveness of EAC appeals to me.