It seems like there is a real issue with codecs almost more so than rip quality. I suppose it's pretty easy to figure out whether you want lossless or not and I would guess many here do. However, it seems that when adopting your format of choice, you could potentially limit what devices you can play music on. FLAC has come up a few times, as an example, which is not currently supported on the BM5 or many portable players.
I'm wondering two things here.
1. If you rip in a lossless format, is there a reason that you could not use a program like Switch (I use this on my Mac) to switch to either another lossless format or even a compressed one. In other words, is one format more or less "lossless" than others or have some qualities which would make them sonically desirable.
2. I'm wondering whether you can't make the BM5 support whatever codec you want. I'll have to try this out when we get our models in (the US won't get them until the very end of the month). On my BeoMedia I was able to boot it in Windows and download video codecs, like divx, from the web and once installed on the underlying OS, BeoMedia played them perfectly. I never tried it with audio, but can't imagine why it wouldn't work the same way.