[ffooky]

It will indeed burn audio from FLAC and now has the facility to export (convert) audio formats. The Getting Started Guide bundled with it states:

"OGG: Creates a high quality compressed audio file, similar to MP3. Your player will need Ogg Vorbis support. iTunes does not support Ogg Vorbis.

FLAC: Creates a full quality compressed audio file. Your player will need FLAC support. iTunes does not support FLAC."

I couldn't give a monkey's about Vorbis but the fact that it does not support ALAC (licensing maybe?) but makes a point of mentioning the lack of iTunes support for FLAC is a nice nudge in Apple's direction.