I installed the Squeeze Box classic a couple of weeks ago and love it. I choose the classic mainly due to price. All my music is stored in FLAC format on a 1TB USB hard drive connected to an older laptop which runs the Squeeze Center server. Before this I tried Denon's IPOD external connector which also streamed audio, but had constant drop outs using either TWONKY,TVERSITY or MS Media server software. The Squeezebox software runs without a hitch even on a busy laptop.
I use the Squeezebox's built in Burr/Brown DAC and connect to my Denon 1909 AVR using analog in pure direct mode and the sound is fantastic. I tried the digital also, but prefer the Squeezeboox's DAC over the Denon's. If your receiver has better DACs then digital would probably be the way to go (for Audyssey, better bass mgt. etc...).
