Lossless to ACC Automator Conversion/Multiple Libraries/External Hard drive

I've been playing around with setting up a home media server, and have run into a few issues and have a few questions about this.
Question 1: Best way to rip into lossless format?
-apple lossless vs. other: has anyone had problems streaming lossless files to iTunes/Airport Extreme?
Question 2: Best way to manage multiple libraries?
-Library manager vs. option key during startup?
-see below
Question 3:Any Automator scripts to convert Lossless to AAC, then save to desktop?
Why this is important to me:
-goal is to have large external HD as a media server with a mac mini/iTV as front end.
-would like to have iMac hardwired to external HD via Firewire for data manipulation/editing, then upload into 'Master Source' file for photos, music, movies
-would like mac mini/iTV (eventually) to act as always on front end client for external HD; would be hardwired/firewired to external HD to prevent lag time; thus could use front row for browsing photos, music, movies off TV monitor
NOTE: no desire for cable/sattelite viewing - what I want to watch I would buy on DVD (backup reasons)
-would like to have music stored in lossless format on external HD for home stereo use, etc, and have a duplicate library in AAC on desktop for syncing with ipod nano
-look for my posts on Front Row issues/wish list for TS file viewing, problems with multiple iPhoto libraries
BTW any external HD that have 2 firewire ports? Most that I see either have two USB 2.0 ports or 1 USB and 1 firewire port

Hi Kirby-
My IMac is 10.7.5 Aperture 3.4.5
My MacBook is 10.8.5 Ap 3.4.5
Guess it's been a while since I've posted.
Thanks,
J

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