What, FLAC encoding? It's great. Reduces file sizes to between 40-60% of their original WAV size, lossless-y. APE is slightly better at compressing (less than 1% difference in filesizes though), however it uses more CPU cycles in decode phase (ie, APE files encode slightly faster than FLAC, but playing back require more CPU.) For me, FLAC is better, esp. since in the mobile environment depending on your config, CPU cycles aren't easy to come by... hard drive space is. Either one though will reverse and create the original WAV file, so if you want transcoding is very easy.
For audiophiles (folks like me that drool at the sight of a Krell power amp and run like hell from Bose), FLAC is the only way to go.
And that troll who said there's no diff above 160kb MP3? Grab a new set of ears. Even after numerous punk/ska shows and 2 years in drum corps, I can still hear the diff between a 320kb MP3 and the original source.