Thanks for your feedback. Sure, any digital signal is by definition finite in its resolution (the sample rate or bits). I was trying to address the distinction between wave files of the type stored on audio CDs, and MP3s - both digital signals. I agree that the Fourier transform is in principle lossless, but it's particularly useful to use it in a lossy way, i.e. to throw out the least important (to us) components of the signal. If I was particularly misleading about this, I'd like to know.