A few questions about using iTunes to create a digital jukebox on my Mac
G5. The Mac has dual 2 GHz processors, 1 GB of SDRAM, and two 250 GB
internal hard drives.

I have been ripping all of my 500+ CDs into iTunes, using AIFF because I
(mistakenly?) believed that any file compression (e.g., FLAC, AAC, or
Apple Lossless) would cause *some* decrease in sound quality compared to
AIFF.

I have had to stop ripping at about 400 CDs, because the 250 GB drive on
which the iTunes file resides is nearly full - mostly with iTunes files,
of course!

Questions:

1) Do FLAC, ACC, or Apple Lossless actually result in a perceptible
reduction in sound quality, when reproduced through a good audio system
(Denon AVR 3803 receiver, Vienna Acoustics speakers), or am I just
wasting disk space by using the AIFF format?

2) Can an iTunes file be split across hard drives? (No, I don't have a
RAID set-up.) My guess is no, since iTunes seems to open by default the
iTunes file on the system disk, and there's no apparent way to open an
iTunes file on another disk, unless I boot from another disk.

3) If I decide to stay with the AIFF format, can I put my System Folder,
iTunes, and the iTunes files on an *external* 500 GB HD and designate
the external HD as my start-up disk? I believe I've used an external
disk for start-up with my PowerPC 7200/90, but have not tried it under
OX 10.x on my G5.

Thanks for any help with these questions.
Bob