Hi Guys,
Gordy is correct... there was a software update months ago that allows one to connect an external USB Hard drive (formatted for FAT32) to read and write music to and from.
NOTE: The Olive User's Manual is not up to date, so many of the new features from the latest software updates are not listed. Olive needs to release an updated manual

Olive does not support Apple Lossless files (not sure if they are still looking into allowing for this.... a licensing issue), but WAV, FLAC, and various MP3s are compatible.
Best regards,
Vinnie