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I know a chap who spent £200k on his hifi. He's a pretty well known audiophile. When a manufacturer releases a new piece of kit for example, they normally send him a personally branded one as a gift so that he can audition it. Sennheiser made him a one off pair of walnut wood headphones for his birthday last year. Anyway, I digress.
He has been Flac only for nearly fifteen years now. (Used to pay £1k for 16GB of storage back then!).
Anyway, he set up a blind comparison for me when I first met him. I could tell a difference between Flac and 256kbps MP3 but it was extremely subtle.
To put it into context, I could hear a bigger difference when he bypassed his dual mains filters. You're going to need one hell of a rig to make it worthwhile.
Stonehedge
freddo
I agree with the point about the difference between mp3 v0 and lossless, although considerations for me in having opted for FLAC many years ago were: 1) the future-proofing benefit of being able to transcode to whatever new formats might emerge, and; 2) the absence of DRM.