Hi Rich,
The compression setting is located in the front panel control at:
'Settings' --> 'Compression' --> 'FLAC'
But please note that the Brennan ripping process is a two stage event; in stage 1 the CD is RIPPED in 'wav' format to the HDD, followed by stage 2 when the 'WAV' files are COMPRESSED to the selected format. The compression stage only occurs if the B2 is not doing any other task, and leaving the WebUI open counts as an active task and will prevent the stage 2 compression from starting.
Regards,
Peter.