Jeff, I'm not sure how it works in a Mac environment, but my BDP-1 is connected to my local network via Ethernet. I move my iTunes (AIFF) files from my iTunes directory to the hard drive connected to the BDP-1. If the Mac works the same way, you don't have to copy to the hard drive and then connect it to the BDP-1.
I believe the BDP-1 plays wav files, but understand that wav files do not handle tags well. I have used FLAC in the past, but now find AIFF as good, and easier to use through iTunes.
Dave