I, too, have a 3808, and agree the interface is far too cumbersome for streaming local files, or Internet radio for that matter. As mentioned above, you CAN configure the Denon to work with (non-FLAC) network streams, but instead, I suggest just using one of the Squeezebox, Sonos, or other similar players which are better designed for that function, and offer a graphical display with dedicated remote, as well as ability to build playlists and save "favorites", along with other features the Denon lacks.
The forthcoming Squeezebox Touch will be able to stream 24/96 FLAC files (I suggest WIRED ethernet for high-res tracks), and will have a 4" color LCD display for displaying album art and track information.