I don't think you'll get a lot of push back on the quality of mp3 vs. FLAC and it sounds like you found a nice way to make FLAC portable in the PC domain. I used Winamp and FLAC before going Apple and now do something similar on my iMac with iTunes. I rip to AIFF with the error correction on and then put the music on a 120GB iPod Classic. It still uses the iPod's internal DACs but they are OK and with a nice pair of Ultimate Ears ear buds I'm set for portable use. At home I use iTunes/Airport Extreme/Airport Express to feed my 990 and it is very respectable. Enjoy!
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AvFan
Outlaw 976 | ATI 2005 | M&K 850s Left, Center & Right, Surround-55s, MX-70B Sub | Harmony 950 remote | Panamax 5100 | OPPO UDP-203 | LG OLED55B7