MP3 is compressed and lossy at all times.
FLAC is compressed but lossless - you set the compression level at time of creation. The compression levels are expressed as numerals between 0 (lowest) and 8 (highest). 5 is considered the norm.
The WiimHome app currently shows title, album and artist. Technical information shown is bitrate (minimum bandwidth of the connection needed to play the stream without dropouts), bit depth and sampling rate of the stream. It doesn't provide any information regarding the encoding of the stream (MP3, FLAC, AAC, ...). So you can only guess based on the bitrate if you're listening to a lossless or "compressed" (lossy) stream.
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