Yes! All .flac or .alac files. I can certainly tell the difference between my Mac's audio card vs. my older PC's audio card.... the PC's headphone out jack is so awful that I can't listen to music on it... I don't know if the audio card in the Mid - 2011 iMac is genuinely quality or not, but definitely worlds above my PC.
Also, I know that the T1 has the MAP of $1295, but what price can they typically be found for with a call?