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Seems the claim that it handles all major file formats, including ALAC, is a lie. No matter what the bit/sample rate it absolutely chokes on ALAC files. Since 98% of my library is ALAC i'm so screwed by this. It does sound wonderful with all other formats but I'm not converting my library just for this. No, not happy at all.
ALAC conversion is pretty simple, just set a program going overnight and wake up with new files. Unless you've got like 30k files, it isn't so bad. If you are using this player, you'll probably want to organize into A-F, E-... et cetera, anyway, so you can batch up section of the alphabet. I've reviewed this on headfi, and quite like it. http://www.head-fi.org/products/lotoo-paw-5000/reviews/14728