Lossless audio formats for PS3?

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jvr

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I wonder if anyone can help me with this issue. I was investigating BD players and then realised that the PS3 is getting so many good reviews not only as a BD player, but obviously for being able to do a host of other things as well. One of this is to act as a media server and I was thinking that I could use it as a digital library for my main AV set-up.

I am currently using iTunes though, so most of my music files are either in AIFF or ALAC. From what I have read, the PS3 don't play either of them, in fact the only lossless format that it would play is WAV(E). This format has some issues, namely ID tagging and the fact that, within iTunes you can only convert to 16 bit:48kHz and nothing higher. The last-mentioned is not the end of the world as I only have a handful of songs in my iTunes library at a higher bitrate in any event. 

Couple of questions:
Is it true that the latest PS3 slim still only offers WAV as the only lossless format?
If so, how should I best address the ID tagging problem?

It would apparently only present a problem during the initial set-up and in the process of transferring my library onto the PS3. With any new material it seems best to rip it directly onto the PS3 and get the ID tagging on-line.
 

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