I agree with what people are saying here about lossless formats being,
after all, lossless - but no one has addressed what seems to me to be
the crucial question raised by the OP.

Suppose the SB and/or the server isn't able to do bit-accurate FLAC
decompression in real time?  For example, in any computer occasionally
there will be an error due to a bad hard drive read or a RAM glitch or
something.  In normal asynchronous applications this gets caught by
error checking and corrected.  But here the decoding has to occur at
least fast enough to keep up with the music.  So isn't it theoretically
possible that some errors could creep in due to this?

Let me be clear, I consider this very unlikely since it should be
possible to decode FLAC files much faster than real time, thus leaving
plenty of time for error corrections in the unlikely event one occurs. 
Also, such an uncorrected error would probably  have a big effect on the
sound, not a subtle one - unless the SB does some kind of interpolation
after an error, as CD players do.  But since FLAC files probably encode
the data in a non-local (in time) way, this might be impossible.


-- 
opaqueice
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