Wait, what would jitter have to do with the FLAC vs high-bitrate MP3 debate? Both are stored as bits on the drive, and therefore don't have to worry about rotational speeds as you read the CD. If you're talking about CD vs FLAC, that's a different discussion.
Also, to be able to say that a $500 system will make your music sound better and to say that a $500 system will help you discern the difference between FLAC and MP3 are totally different things. Yes, a $500 system will make your music sound better. But what a sound system cannot do is make you hear at impossible ranges, those high and low bits that get stripped out during a lossy encode. If you choose a low enough bitrate, and enough bits get stripped out, it will be easy to tell the difference with almost any sound system.
I can't say because I haven't actually observed you doing the tests but if you say you can hear the difference between FLAC and V0, I can only say one of 3 things:
1. You have exceptional (supernatural) ears.
2. You're not listening to V0, maybe 128 CBR.
3. You're not doing blind tests and therefore are experiencing the placebo effect.
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