Whats the point in keeping everything on your hd anyway? U make em flacs and share ur stuff, then delete them. As for flacs downloaded, u burn them as audios. Most people do have room for videos, why not for couple of shows as flac? full show as flac takes something around 1GB, IMO that's not too much.

What comes to skipping and such, I think most players can buffer the audio to avoid skipping....or well, just don't run all the progs u got all at once :-p