What settings should I use for File Format Conversion Setup?

Hi

I am a bit confused on best settings for the LMS. I use a SB2 connected to a DAC and then to a medium to high end Hi-Fi system.

I mainly listen to Apple Lossless Files, Pandora, and Spotify at 320kbps (and occasional older MP3 files).

I am not sure what these settings mean or should be. What should I disable?

For example, what do I set the WMA Lossless to on the File Types/File Format Conversion setup?? Do I Disable them? Is this about whether my MacBook (running LMS) vs the SB2 does the conversion to FLAC? Which is a better choice??

Also, given the kind of files I listen to described above, what other settings should i change from the Default values???

Thanks
Larry.