Technical Details For Geeks

FLAC uses linear prediction to convert the audio samples to a series of small, uncorrelated numbers (known as the residual), which are stored efficiently using Golomb-Rice coding. It also uses run-length encoding for blocks of identical samples, such as silent passages.

If you're interested about metadata blocks, modeling and framing read more of the basic info about FLAC structure here.

For those of you that are ultra-geeks, full format specification can be found here

And you can find details about ogg-mapping and streaming support here