I picked up the unit today, typical Logitech build quality and looks.
Through research, it would appear that this device does not natively work with Squeezecenter and the like, and it does not support FLAC. There is a mode that basically has it make all sounds coming out of your PC, regardless of source, so I should be able to fool it into playing Squeezecenter that way.
My other choice would be to research a codec that can be pulled into Windows Media Center that can play FLAC - if so, then the full functionality of the device can be realized.
Either way, money well spent I figure, to 2x the use of my music storage.