NAS, Squeezebox and iTunes

I'm in the process of setting up a NAS to stream music via
Squeezebox.I've got to re-rip my CD collection to lossless format, but
am unsure of which format to go for. From what I've read FLAC is
squeezebox's preferred lossless format (apparently apple lossless won't
allow you to ffwd or rwd on squeezebox). On the other hand FLAC isn't
natively supported by iTunes or my ipod. My current thinking is that
the compromise solution is to rip everything twice, once to high
quality FLAC for use at home on Squeezebox and once to lossy small file
size AAC or mp3 for use on iTunes and on my ipod (with obvious
advantage that I can carry more music around on ipod).

Any suggestions on best way to proceed?

thanks.