If you have got most of your badly scratched CD's to rip successfully with EAC then you could just re-burn them onto CDr without a noticeable dip in sound quality, get yourself some good quality CDr's from a manufacturer like Taiyo Yuden and they will last you a long time if you take care of them. (here is a good guide to quality media)
http://www.digitalfaq.com/media/dvdmedia.htmYour PC is far better at error correction with badly scratched CD's than a CD player is I have had scratched CD's that no CD player in the house could read but the PC could.
Then you could buy a high end CD player and not worry about the the scratched discs anymore.
A Squeezebox is a great and convenient device in my experience, an un-modified Squeezebox without an off-board DAC sounds great for the money but it isn't capable of what I would call a high end sound, if you use it with a dac preferably with a buffered model like the Benchmark DAC1 or the Lavry DAC then you are getting closer to the high end source you are after.
However these DACs are not the only way to a high end sound with the Squeezebox, Wayne at Bolder Cable does some highly respected modifications to the Squeezebox that some say equal some very high end CD players, whatever you do the Squeezebox really needs a high quality linear power supply to start with.
I hope this helps
