I have posted the following reply a couple of times:
Ogg-FLAC is lossless, but as I said you can't play it with MC.
EDIT
The compression level setting affects only the encoding speed. FLAC is a so called asymmetric format and its decoding speed is practically not affected by the used compression level. It is also one of the fastest formats to decode. This is useful for those who constantly encode lossy files from a lossless media library.
I just have to add that the ONLY audio formats that I play with the hundreds of audio files that I have are
FLAC and Ogg Vorbis So superior to any commercial audio codecs.
I have to comment on how great APE is.
I believe the APE and FLAC should sound the same and APE seems to allow for a small superior rate of compression than FLAC.
I started using FLAC more than APE, simply because it seems like it is more accepted on various players and top musical are FINALLY selling their music directly to their customer base and allowing downloading directly in Losless FLAC format !! Jackson Browne, Paul McCartney, The Eagles, etc.
FLAC can be used commercially, but it cannot be used for a profit and artists, record companies, etc cannot sell the FLAC codec. Since the difference in the file sizes and therefore the download times are longer, purchasing and downloading an artists work from them might cost a $1 or $2 more (the most I've seen), than the mediocre lossy MP3 format.
On my COWON portable media player,which natively supports FLAC and Ogg Vorbis, I usually play my media in Ogg Vorbis format (Q6 sounds fantastic), and from my PC, I will play FLAC.
Either way, using APE or FLAC to play or archive audio files are a great way to go. Nothing is lost if converted back to WAV, for burning or other reasons. APE, FLAC and Ogg Vorbis are open source and are owned really by all of us. None of the Microsoft DRM virus can be included. I hope people understand that DRM has nothing to do with copy protection and is only there for Microsoft to make a fortune in licensing fees.
Jon