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Technically yes, you lose quality, but it isn't really an issue if you use good quality files to begin with. Most digital mixes are made like this, I guess, and it doesn't really tell. I mean, 320 is such good quality already. But yes, technically if you want to avoid transcoding you will have to use WAV or FLAC. But personally I would rather than a "little bit worse 320" rather than a FLAC using loads of memory just to preserve imperceptible extra quality.
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