The audiophile SB3 users tend to prefer wired over wireless connection to the PC/server.

Lossless is lossless, but WiFi transmissions can fail with small glitches.

When I first installed my SB3 wireless, I experienced audio dropouts. After connecting direct via ethernet, it worked flawlessly.

Here's a discussion of the topic on the Slim Devices forum:

http://forums.slimdevices.com/showthread.php?t=26949&highlight=wireless+sound+quality

p.s. I am ripping CDs with the iTunes Apple lossless encoder. Easy to use, and free.