I didn't make myself very clear. I've been using the Squeezebox to play music I've copied from cd to hard drive. I import them into iTunes as AIFF with error protection. I did this for a number of reasons (cdp gone for a while, interested to hear the quality of hard drive-based system).
What I meant to say in the previous post was that once I get my cdp back, I imagine that I'll mostly use the Squeezebox/harddrive/DAC-AH as a way to play my compressed files (mp3, AAC, etc.). I'll probably always have some AIFF files on hard drive but unless something changes (and I'll admit that it's always a possibility) I probably will continue to use cdp to play redbook music.
As for the sound of the Squeezebox with its internal DAC I found it grainy, thin, slightly brittle and edgy, with a general sense of weakness and distance. (I haven't gone back to listening to it without the DAC-AH, but will eventually.)
I've really been shifting things around in my system so haven't always been able to isolate the symptoms. In the past 3 months I've introduced the squeezebox, DAC-AH, speakers, tube amp, and a temporary cdp to replace the Cary while it's been out of the house. I'm still looking at cables and pre but knkow I need to let my impressions form around what I've got now before I proceed to the next round of purchasing.