FLAC
FLAC is a lossless compression format for audio files. Unlike MP3, all information is preserved from the original 1,411 KBPS WAV or AIFF format (CD quality).

Similar to ZIP compression, the FLAC file is smaller in size without reducing quality.

Some devices and applications play them and other applications decode them into WAV and/or AIFF. There are free resources available here: http://flac.sourceforge.net/download.html

Resources on FLAC
FLAC page from SourceForge: http://flac.sourceforge.net/

John Atkinson's breakdown on file formats for Stereophile.

Batona Releases available in FLAC

Path2
A Wild Feeling Cloud People
"A Wild Feeling"

Path3
Transmission Floods
"Transmission"
Release coming 2008

FLAC Vs MP3
MP3 loses.
Nice!