No idea about the SheevaPlug and transcoding. You only need to transcode
for use over cellular, though, for WiFi iPeng will use FLAC natively.
For transcoding generally to work, you need to have lame installed. You
can see whether it is under the player settings in the server's web
interface.

On the setup:
http://penguinlovesmusic.de/2011/02/11/coolios-guide-to-remote-playback/


-- 
pippin

---
see iPeng, the Squeezebox iPhone remote and 
*New: iPeng for iPad*, at penguinlovesmusic.com
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