It is possible to select what compression you wish to apply to your music collection using the front screen menu:-
"Main menu > Settings > Compression > Select FLAC, FLAC+MP3, MP3-128k, MP3-256k or none (WAV). FLAC is default.
(FLAC+MP3 creates both with the MP3 in a hidden folder - this is very slow)
When ripping a CD the B2 copies the CD's music as the CD was recorded (WAV) - no compression is done on the fly while ripping.
When the B2 detects that it is "idle" (switched on and unused for five mins) it then starts to convert/compress the music files on its internal HDD to the format you have selected.
NOTE - I THINK compression is a one way process (If not others will correct me here) thus:
WAV > WAV (no compression)
WAV > FLAC
WAV > MP3-128k
WAV > MP3-256k
WAV > FLAC+MP3
FLAC > FLAC+MP3
So, Yes NO compression does mean y0u are saving WAV files.
But should you later alter the compression selection the B2 will go back over all your pre-recorded music and apply the selected compression to it ALL (along the lines of the table above)
Fred