The only downside of on the fly encoding is that EAC, the best ripping software, can't do it.
QUOTE (edekba @ Nov 16 2006, 02:09)

Encoding on the fly is a audio track sent to the RAM and then encoded into an mp3 while another wav file is being ripped. Thus encoding faster formats (mp3s) would be fine, but high density files (-8 FLAC) might have some issues.
That's not really an accurate description of how it works. What actually happens is that the ripping program reads the audio data from the cd and streams it
directly into the encoder, using
pipe input. The encoder then writes the file to disk, usually in rapid small chunks. It doesn't start reading the next track until the current one is finished. If you watch CDex in operation with the task manager while ripping a long track, you will see that it never comes close to using as much memory as the final file takes up.
Edit: while trying out the new musepack, I observed CDex:
20mb ram / 15mb vm while ripping
14mb ram / 11mb vm while doing nothing
One of the output files was over 20mb.