Album art, windows and squeezecenter help

I need some help. I have been using windows media to rip cd's to wma lossless because i have a hard time believing there is any audible difference in lossless formats and that is the easiest tool. It rips, tags and provides artwork, even a monkey can do it. I use squeezecenter and a transporter for the rest of the equation. Every post I read relating to this subject suggests flac is the better format and eac the better ripping tool so I figured I would give it another try (I started this way but quickly changed). I had no trouble setting up eac and ripping but I cannot remember how to get artwork to squeezecenter. I can get the artwork and drag it into the folder eac creates in my music but i cannot get it over to sc.

So I suppose I am asking 2 questions...the first is simply about the artwork and the second is there really a difference between ripping tools and lossless formats...I mean an audible one...not just because that seems to be what everyone says...I have yet to hear a rationale explanation as to why...have you?