In the following thread: http://forums.slimdevices.com/showthread.php?t=84823&highlight=ALAC+touch AndyG states that the native ALAC decoder in Touch is buggy, and if the SBS is capable of transcoding then by default it is done there. I believe that implies that most NAS boxes and the Touch's own SBS don't transcode, so the native ALAC decoder is used on the Touch. Using an SBS instance on a PC would normally cause the file to be transcoded by SBS.
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