<< Files on a computer that aren't in a lossy compression (IE: MP3's, which sound like complete garbage on most audiophile systems, as you pointed out) are still as musically accurate as a CD - they should be as accurate as a CD in all respects since there's no loss associated with digital formats. For all practical purposes, files in a wav format should be identical to the musical files on an audio CD. >>
Another limitation...the sound card. You can forget about "audiophile" speakers if you don't have a true audiophile sound card. With that, chances are that the music will still sound like crap compared to a standalone cdp.