The C3 & Cue Files:
After a bit of conversion and testing this is what I have found to work and not work, as always YMMV.
File Formats refresher.
WAV 32 - 48 Khz / 8 - 24 Bit
FLAC 32 - 48 Khz / 16 Bit
APE 32 - 48 Khz / 16 Bit (EQ is NOT available when playing APE files. If the compression rate is too high files will not play.)
MP3 8 - 320 Kbps
WMA 8 - 448 Kbps
FLAC files with Cue do not play properly, the FLAC will play all the way through if you do not skip any tracks forward or backwards. What the C3 seems to do when you hit next track is that the playing time does not reset back to zero for the next track. Basically if you were 2:30 into the first track and you hit next, the C3 does not start the second track playing at 0:00 but a random time into the file and as you next / back it progressively gets worse. Almost like the FLAC has the wrong Cue with it, but this is not the case...
Embedded Cue's in FLAC files will not work either.
WAV files with Cue work perfectly, you can step forward and backwards and all works as it should.
APE files with Cue work perfectly as well except there is no EQ while playing APE's. You can go and change the EQ settings but the sound will not change. Also APE's with high compression will give "Play Error" and not play.
Monkey Audio APE files are lossless files just like FLAC files are and actually compress higher than FLAC's do.
The APE files I created for this test just used "Normal" compression and worked perfectly.
MP3 & WMA no reason to test.
XXX + Cue files were made on the PC with foobar2000 and CueTools
XXX + Cue were made on the Mac with XLD (Mount folder as CD and convert) I don't have a working optical disk in my C2D so I did not try ripping a CD with MAX. There is also a commercial package for the Mac called Audio Converter Pro from Xilisoft which I believe will allow you to make APE's of your files, but you would have to email their tech support and ask.
found out, the Cue files cannot have any "Replay Gain" information in them or they will not play.
This is what I have found out about the FLAC's and Cue's, if we ever see another firmware for this unit hopefully this will be fixed amongst the many other quirks.