If you are going to use any sort of data compression, FLAC is the recommended choice. It does exactly what it says on the tin (see the blurb below). I tried compressing a track, uncompressing it and comparing the difference using inverse cancellation, and just as I had hoped, I got silence. Unlike other forms of data compression for audio, its completely reversible, and you can even play it without decoding it. More and more platforms are starting to support FLAC, I love it so much I bought a Cowon A3 which can record FLAC real time and play it back :)
FLAC stands for Free Lossless Audio Codec, an audio format similar to MP3, but lossless, meaning that audio is compressed in FLAC without any loss in quality. This is similar to how Zip works, except with FLAC you will get much better compression because it is designed specifically for audio, and you can play back compressed FLAC files in your favorite player (or your car or home stereo, see supported devices) just like you would an MP3 file.
FLAC stands out as the fastest and most widely supported lossless audio codec, and the only one that at once is non-proprietary, is unencumbered by patents, has an open-source reference implementation, has a well documented format and API, and has several other independent implementations.

We Support FLAC