I had more or less the same question:

http://forums.slimdevices.com/showthread.php?t=19946

dean blackketter;78006 Wrote: 
> The replay gain adjustment happens at decode time and is independent  
> of the master volume control (and the analog preamp gain control).   
> It's a simple gain multiplier, calculated from the replaygain value  
> stored in the tags.

This was in response to the details in firmware, so this means it's
done at the player.

Regarding it being a "lossless" process I would venture to say it isn't
- if the track is HDCD-encoded, ReplayGain implemented in SlimServer
will disrupt HDCD decoding, which means it isn't bit-perfect.


-- 
Mark Lanctot
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View this thread: http://forums.slimdevices.com/showthread.php?t=28462

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