I noticed (in your sig) your iPod is 30gGB so it is an iPod Video not a Classic? This is relevant and not me just being pedantic, as you 'could' instal Rockbox on your iPod 5 or 5.5, and this would give it FLAC playback ability for free
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iPod classic is not supported by Rockbox you see. Rockbox is an alternate firmware that has a ton more functionality than the satndard iPod firmware, but looses Apples ease of use
I say 'could' as a caviat as I have not played around with Rockbox in a long time, so make your own judgements
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. I put it on my iPod 3rd gen but eventually got bored an went back to the official firmware, and there is a risk of bricking your iPod so dont do it unless your know what your doing.