Nice. Please report back and let us know what you think.
I'm basically in the same boat, I have a TON (600GB) of stuff in FLAC that I'd like to be able to just drop onto a player, but instead I have to go through the extra step of converting to MP3 (using db power amp) before dumping it onto the ipod. That being said I pretty much only use the iPod when I'm out running, last year I trained for the NYC marathon, so it would have been convenient. I don't see myself doing that again though.