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As someone who has roughly 50% of my music as FLAC at home, I really don't care to have it in my car. MP3s sound great in amongst the road noise of London traffic. I suppose if you had a really quiet car, like a Lexus LS, BMW 7, Jag XJ, or S-Class... with the double glazing option ticked too, it *might* swing it!

I'm in the same boat, I've got 99% of my music encoded as FLAC, for my main listening at home. The MP3s reside on another computer for transfer to the EMPEG and what ever flavor of portable MP3 player is in fasion at the house. I've tried out the FLAC stuff in the car (a very noisy Toyota Prius, except at a stop! ) and its just not worth it in my case anyway.