I tried get Firefly to serve the resulting TS (video transport stream) file to iTunes and was rather surprised to find out that it had a go at transcoding.
you might want to try the software here: http://www.squared5.com/ if there’s no firefly/server side solution. I use mpeg streamclip for tv progs recorded to my PVR which I then want to rip to a computer compatible format. TS is supported as you’ll see on the squared5 front page and I think it should work for straight audio files.
hope that helps, andy