Thinking about Laptop system - Newbie Questions


As an old timer (listening to 50% vinyl/50% CD), all this music server stuff is very new to me, but I am somewhat computer literate. I was thinking about building a nice little laptop based music server. Thinking about either a Logitech Transporter or Squeezebox Duet with separate DAC. I have a wireless router close enough to the 2 channel system so I can go either wireless or Ethernet.
Laptop is Toshiba with 4 Gb RAM, 340 Gb HD. I would use a stand-alone HD to store music.
So, I have a few questions: Transporter vs. Duet/DAC?
What format to store music? WAV, FLAC, etc.?
Can I still use the laptop while playing music?
Any other helpful hints?

Sorry for all the newbie questions. I am doing as much research as I can before I jump into this.

Thanks for any info.
smholl
FLAC would be my first choice for compression. Yes you can still use your laptop while it streams music. I'm sure others can help you with the comparisons of Logitech gear.

You have many choices and directions that you can go.You'll never use a CD player again, once you get it figured out!

Good luck
Make sure your external HD is QUIET. If you use iTunes use Apple Lossless Encoding to rip. Back up on another HD is always safer too. Wireless or ethernet is good. I'd go ethernet though.
I would go with the Squeezebox Duet or Classic and a good DAC. FLAC; wireless is just fine. I love my Monarchy Audio M24 DAC.