Yep - as you say, you just need to alter the mpd config file to read Apple ALAC files.
See here:
#263
and the full solution is here:
#59
Use the built in editor called nano.
IIRc, the syntax in PuTTY is nano /etc/mpd.conf
Do you know how to use PuTTY? It's a terminal program.
HTH
Jon