Hi Mark,
To answer your questions about why different yet equal file types exist: the world of IT is notoriously poor at deciding on a standard format and everyone wants it to be their own. Compression that occurs to a file such as WAV -> Flac could only have noticeable playback differences if you're streaming from a early 1990's computer with about 16 megs of RAM. People report differences for one psychosomatic reason or another, but those who do are rarely, if ever, conducting an actual scientific (ABX) test. This is the reason why most audiophiles don't use v2 or v0 even though they would not be able to differentiate it from lossless. Storage is cheap, and if you have money to burn, then by all means use FLAC, but the economy for those trained in engineering is not exactly doing well right now so I am spending those few hundred dollars on parts upgrades instead ;-)
For those who don't believe me and think they can tell the difference between two lossless formats, test it for yourself to see that they're identical if that is what will give you peace of mind. Then test a v0 MP3 and then a v2 while you're at it to realize how good audio engineering has gotten in the past few years. If you test it, however, make sure the volume is equalized and that you're not using replay gain.
To answer your questions about why different yet equal file types exist: the world of IT is notoriously poor at deciding on a standard format and everyone wants it to be their own. Compression that occurs to a file such as WAV -> Flac could only have noticeable playback differences if you're streaming from a early 1990's computer with about 16 megs of RAM. People report differences for one psychosomatic reason or another, but those who do are rarely, if ever, conducting an actual scientific (ABX) test. This is the reason why most audiophiles don't use v2 or v0 even though they would not be able to differentiate it from lossless. Storage is cheap, and if you have money to burn, then by all means use FLAC, but the economy for those trained in engineering is not exactly doing well right now so I am spending those few hundred dollars on parts upgrades instead ;-)
For those who don't believe me and think they can tell the difference between two lossless formats, test it for yourself to see that they're identical if that is what will give you peace of mind. Then test a v0 MP3 and then a v2 while you're at it to realize how good audio engineering has gotten in the past few years. If you test it, however, make sure the volume is equalized and that you're not using replay gain.