Thanks for the update PJPro. 
The whole solution seems very interesting and much simpler than your first setup with TVersity.
I have been looking into the lossless streaming options over the last couple of months but so far have not actually set up anything. Reported wireless problems on the SB Duet has put me off that option so far.
Pity the Foobar plugin only works up to iTunes 7 as per your other post on improving windows audio. Possibly once i have installed and played with Foobar a bit i will swap from iTunes
(we all seems to love what we are used to and comfortable using - certainly the case for me).
Is it simple to still use iTunes to rip and do album art, set up Foobar to read the same music library and then just run Foobar when i want to stream to PS3?
Any update re streaming the album art as yet?
The only inconveniece of streaming to PS3 seems to be the need to reconfigure the PS3 audio out from HDMI to optical via the DAC whenever i want to stream the audio as opposed to playing DVD/BR - however not the end of the world.
[desktop Windows XP SP3 study PC, iTunes 8, apple lossless format for
ripping CDs, wireless home network, PS3, Beresford 7520 + LM4562NA
opamp
upgrade (still burning in), Denon 2807, WD Diamond 8.4s (next upgrade)]