"Configured optimally SqueezeCenter (Server) decodes FLAC at the computer/server and streams PCM to the Squeezedevice. At least that's the way I understand it to work."
THat is no the default behavior though, right?
I seem to recall there are ways to configure that would change teh default behavior which as I recall is to convert to (lossless) compressed FLAC to improve network throughput?
I will need to revisit the documentation. The default settings work very well in regards to sound quality it seems so I have not bothered to experiment. I like that I hardly ever get rebuffering events while listening. FLAC format lossless compression probably helps with that but maybe it is not required.
I have worked professionally with compression algorithms though not for audio applications. If done correctly, I would tend not to fear them, especially "lossless" compression which is used prudently and regularly in many computer applications , but of course, in this world, we all know that things are not always done correctly....