Apple Airplay Sound Quality


What is the potential for sound quality via Airplay? Is this essential WiFi? Or Bluetooth? What technology is being used and what are the limitations? I've reviewed all the material I can find and don't see that information (in my own non-technical language, anyway).
Thanks,
Art
artmaltman
http://www.stereophile.com/digitalprocessors/505apple/index.html

Look at comments associated with 'figure 7' for detail
There are two traces on that graph and one is for the analog outputs while the other is for the Musical Fidelity X-DAC V3. The only thing I am not sure is if the MF device is using something to reduce jitter. He does note that it performed better then his RME card from his computer.
Provided you happen to have an Apple Airtunes enabled device, then you should be able to get cd quality from it. The new Apple TV @ $100 takes an Airplay stream and is a 16/48 device making it cd quality. It's wifi...Apples own proprietary system. The beauty of it is using a streaming device such as an iPad to stream music wirelessly from the web and then stream it via Airplay to your hifi. It's got potential.