No, that's not correct, Brian. You can stream natively, and I believe it does so by default (though I could be wrong on this latter front).
Under Settings in JRemote, scroll down to the
Playback and Streaming section. It is explained there, but there are two related settings:
* Transcode Audio: On or Off
* Audio Transcode Quality: Low, Medium, High (different bitrate MP3 encodes)
If Transcode Audio is off, then JRemote streams the native file formats. It supports: FLAC, AAC, ALAC, MP3, OGG, and WAV. The file type will be shown in JRemote's Playing Now as the files play back.
If Transcode Audio is on, then it uses the Audio Transcode Quality setting to tell the server what format to give it.
If you have Transcode Audio Off, you'd better either be on a local network with the server, or have much better than average upstream bandwidth on your data connection at home,
especially for WAV. I'm not sure what happens if you have transcoding disabled and you try to play a non-supported file format. I'd guess it'll either error, or it'll stream it using the Audio Transcode Quality setting instead. If you have these, you can check the Playing Now screen and see what it is doing.