I've used ALAC since I got my Touch just over a year ago. I've never had any real issues with doing so, although I do use a laptop for a server, so I've got plenty of computing power for transcoding. And yes I have vinyl rips as well as DVD-A rips in 96/24 and never had a problem (although I have tested the USB port on the Touch and while it did ok with ALAC at 44.1/16, it would not work with any higher sample rates, at least for the time being). Now I had already had my library ripped to ALAC before I got my Touch, so it's not like I converted a bunch afterwards, and if I had had all my stuff in FLAC I doubt I would have switched. But even though I have ALAC, I still have a separate iTunes for my pods because I just find it easier to keep a separate hard drive just for that, since I'm always juggling stuff between multiple pods since they haven't released a 320 or 500 gig iPod yet. So would you lose anything, no probably not, but also I don't really see you gaining anything by converting either.
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