I've just discovered that CD Baby has made all their downloadable albums available in lossless (44.1/16 flac). This is really great news for me. They have an extensive catalog containing lots of the obscure stuff I like. I'm sure I'll be dropping lots of money there.
I purchases 3 albums yesterday, only to find the flac downloads were not immediately available. It seems they must rip the CDs as they became requested. They worked this morning. A little bit of a let down, but cool nonetheless. I hope this becomes less of a problem as more cds get transcoded.