The benefit of FLAC is that it is a lossless compression, so you don’t lose anything from the original recording. In that respect, it is useful for archiving tracks from your original CD. You can now also play them on your Clip if you wan’t. The file sizes are still larger than the supported lossy formats so there is a trade off there. As for me, I rip my CDs down to Ogg Vorbis for use on the Clip. I’m not an audiofile so the lossy formats are good enough for me.
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