I will try out qaac soon. I used to use it and then decided to stay with lame.So, it really is quite sensitive to the encoding.
Just to clarify, the lavf55.19.104 files just caused the player to sound like a broken cd. When I converted it through foobar's qaac 2.64, CoreAudioToolbox 7.10.8.0, Apple Lossless Encoder, that's when the device became incredibly slow and hangs.
I will give it another go.