I'm very new to head-fi and I'm working on building a decent quality setup that's affordable and meets my needs. A big part of that, of course, is the source music. I'm trying to find info on the available music file formats - which format(s) would work on my equipment, and which files can be converted to a higher-quality format.
I'm currently using SE535's with custom sleeves, a Fiio E17 DAC/AMP, and an iPhone 5c as my portable music player. At home I use my Windows 8.1 x64 laptop as the player.
Is there software out there that converts music files? I know iTunes does it, but is there something better?
Speaking of "something better", how does the iPhone 5 compare as a music player? Are there better players in the sub-$500 price range?