apierre

If you'll take an opinion from a non-expert lurker, but one who has a setup similar to yours, I think the iTunes match idea is an excellent one. If I were you, I would at least attempt to verify that 256K is really unsuitable. You could download an abx program, re-rip one of your tracks to a lossless format, and compare. If 256K is acceptable, you can upgrade your tracks through iTM for $25 and save yourself the trouble of re-ripping everything. Whatever doesn't match, you might want to re-rip, but I'm sure it would be better than doing the whole 3000-disc collection. I have a separate iTunes library exclusively for lossless files, but I mainly listen to a Match-enabled library for my complete (lossless + lossy) collection, which I stream to a Mac mini connected to a Yamaha AVR. I just use the Toslink connection and the DAC built into the Yamaha. Honestly, if I don't know which library I'm running, I have never been able to tell just by listening. It might be the same for you. In either case, I would definitely verify this before I spent money on another box, or committed so much time to re-ripping 3000 discs. (And with kids where are you going to find the time anyway? )

Assuming that's what you have, you might want to verify that it doesn't convert everything to 256K, in which case it wouldn't really be a back up. I believe that's the case with iTunes match, but maybe iCloud is just plain storage. If you decide not to go that way, CrashPlan (crashplan.com) allows for external drives. (No affiliation, just a satisfied customer.) Good luck!