Any number of things:

1: Yes, the Yamaha CD might be a better match for your preamp
2: Having the volume at 80% is a big issue - it is a digital volume
control, so loses resolution at anything less than 100%. 
3: Make sure SS is not converting FLAC to MP3 or some other lossy
format for playing on the SB3. 
4: The SB3 really needs to be connected to an external DAC to sound its
best. 
5: Try dimming the display on the SB3. 
6: Your rips are probably fine, but they may not be. Try using EAC or
iTunes with error correction. The latter, you will have to use ALAC.


-- 
amey01
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