Exactly. Lossless compression means exactly that. And if you come across some freak who says he can hear the difference betwen WAV, FLAC, and Apple Lossless (also known as ALAC), just smile and ignore him. If there is genuinely a difference on his system, then it will only be because his player is not decoding FLACs and ALACs properly, but I can't think of any players that don't decode FLAC and ALAC properly. Some manufacturers prefer you to use one format over another, but this can only really be because their software is tailored towards uncompressing that format quickly and efficiently in real time. Not sure if Naim has a preferred format.