Sorry for the late reply guys....I've only just gotten to work!
Anyways, I'll try to remember how I have my EAC set up.
1) As long as you have the option to get album data from CDDB enabled all your tag info should be retrieved from the online database. I can't remember my exact settings, but I'm fairly sure I've selected ID3v2 tags but no more. I didn't even have to set up the format (i.e. A% C% etc) - it populated all of the fields automatically.
For the few albums I ripped when trying this out it populated all of the fields correctly - i.e. artist, album name, track no, track name, genre, year.....I think that's it. I will try to check my settings tonight and post a reply.....no promises though, it's my wife's birthday and we're going out to dinner to celebrate, so I might be home quite late.
One more thing. If you want to check on the tag to make sure everything looks OK - the fields have all been populated etc, and you DON'T have a dedicated tag tool, just open the track with winamp (I'm using v5.03), open the playlist editor (just hit the PL button on winamp) and select your track in the PL window. Then right click it with the mouse and select file info. A window will open showing all of the tag information.
There is an option here to add a tag using this function but I tried it and neither winamp or XLobby liked it - weird really, but it was bad enough that I opened another thread here on the forum and Tracie came to my rescue
2) No, don't use the external compression option. I tried that initially and couldn't get it to work. However, once you've inserted your CD to rip and it's gathered all of the data from CDDB, go to the action(?) menu, and select rip, you'll get a further option of compressed or uncompressed. If you select compressed it will automatically rip your tracks to APE format and, of course, if you've selected to add ID3 tag info then the whole thing is automated.
With EAC, it is a bit of hassle setting it all up, and so far I haven't come across any albums that the CDDB database hasn't been able to find data for so I don't know what'll happen then, but after all that it's quite easy to use. It does sound like JRiver's approach is much easier to use, but EAC is free. If you're the kind of person who doesn't mind perservering you'll do just fine, but if you want the results with a minimum of effort, it sounds like JRiver Media Center is the way to go.
I'll try to post my EAC settings as soon as I can, but in the meantime I hope this will be helpful for you.
BTW....Archerkit....I've never really looked at FLAC, but I will check out that link before I go any further.
Roscoe