Thanks to all contributors for the advice.
As a result I have two options: 1/ Stay with iTunes for both Slimserver
and iPod usage or 2/ use xACT to rip CDs into a specific library for
Slimserver use and use iTunes for iPod only.
I now understand that Apple lossless format ALAC is just as good a
lossless format as any other, even though it is proprietary, which is
seen as a disadvantage by some. ALAC also compresses data to about 60%
of its original size.
I investigated xACT and it has received good feedback from its users.
However, use of xACT requires manually ripping CDs into .wav files,
then manually converting to FLAC. This sounds time consuming and
tedious, particularly if there will be no audible advantage. 
In Versiontracker, I also saw the following comment "After installing
OS 10.4.7, xACT 1.58 will no longer decode flac files. Repairing Disc
Permissions does not correct this issue. I have used Xact 1.58 in OS
10.4.6 with excellent results."
This highlights the fact that xACT is an unsupported piece of Freeware,
for which there are no guarantees of future performance.
In conclusion, as my Apple G5 and wireless Squeezebox are coping well
with use of iTunes and ALAC format, both of which are commercially
supported, I will continue to use this method for both Slimserver and
iPod, saving substantial hard disc space in the process.
I should be receiving my Transporter shortly and will feed back after I
have used it.


-- 
Ken Hardman
------------------------------------------------------------------------
Ken Hardman's Profile: http://forums.slimdevices.com/member.php?userid=7747
View this thread: http://forums.slimdevices.com/showthread.php?t=27846

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