I'm just about to make a decision on purchasing a new system to replace my ageing VSX-29TX and 300CD changer. Got the wife's approval and everything :)

I'm wondering if the USB input on the SC-05 can be used with a hard drive (spinning disc, not flash) to play apple lossless or FLAC files. My Samsung TV will recognize flash sticks but not my external drive and I wonder if this is the same.

If so, does it allow for file browsing etc to navigate to the songs you want?

Or do you have to network to a PC that is turned on to enable such features?

Alternatively, I would use the ipod connection, but wonder if this transmits a digital signal allowing the amp to decode instead of the ipod. I want to ditch the CDs, but only if it doesn't sacrifice quality. And I'd prefer not to use an aftermarket digital pass through solution like the Wadia iTransport. Can anyone comment on their experience with sound quality?

Also thinking of getting a BDP-05 and notice that a new 2.0 elite player has just been announced, but judging by the model number, price and size of the unit it seems to me that it would not be as high end as the 05. I couldn't care less about 2.0 profile. But just wondering if anyone else can comment on this.

Thanks in advance for your help.