I'm also in the Squeezebox camp and I also use it to stream lossless FLAC files. My primary motivation was to be able to crate up all my CD's so the kids didn't slowly destroy them. One of these days, I'll build an embedded media system (maybe using MythTV) to add 1080p (but mpeg4 compressed) video to the mix so I can stash my DVDs away too. There are laptops out there these days with HDMI outputs and digital audio out for well under a $1000 so I might just go that route and have a couple of TB of disk mounted wirelessly.

Best,