C-200 EAC FLAC Album Art

[hadders]

Hi all,

Very excited, just got my C-200 yesterday.
Have flashed the firmware to the latest 02-02-100214-19-POP-408-000. All good.

But now I'm faced with re-encoding my audio collection into a format that the C-200 can consume.
I'm using a NAS (QNAP TS-210, http://www.qnap.com/pro_detail_feature.asp?p_id=135) to store my video/audio on, and assume this will not effect anything.

I'm using Exact Audio Copy to rip the CDs and then passing them to FLAC 1.21b for encoding.

-V -8 -T "artist=%a" -T "album=%g" -T "title=%t" -T "tracknumber=%n" -T "genre=%m" %s

So I'm using Level 8 encoding and marking up the Tags with Artist, Album, Title, Track & Genre.

However, am I right in assuming that a "Folder.jpg" in the root of the FLAC folder will suffice for album art? I tested that earlier and the media playback seemed to pick up the picture.

My AMP is used for all decoding so I just send everything out the OPTICAL out.

I've seen some other discussions in threads about what level of FLAC the popcorn hour supports and limitations about the PCM spec.

So what I'm asking is, before I embark on a serious reencode of my CD collection, am I using the right (and I use that term loosely) techniques here. I believe I'm not limiting my playback abilities, have tested the tracks I've ripped. Or are there better options to be used?
Is album art support as simple as a "folder.jpg" in the root of the FLAC folder that is a CD?

Any feedback appreciated. Thanks.
Hadders