QUOTE(goodnews @ Jul 28 2007, 15:02)

To clear up compatability questions about this new FLAC 1.2.0 version:
1. Are FLAC 1.1.x encoded files going to play OK with all FLAC 1.2.x decoders (1.2.0 and later) to ensure compatability? (i.e. they will never need to be re-encoded, right?, as the older encoded files won't ever stop playing in new FLAC decoders.)
Yes, all future FLAC decoders will surely decode 1.1.x.
QUOTE(goodnews @ Jul 28 2007, 15:02)

2. Are FLAC 1.2.x files going to to play OK in FLAC 1.1.x decoders OK? Will a FLAC 1.2.0 encoded file play OK (without a decoder update) in an app using a FLAC 1.1.2, 1.1.3, or 1.1.4 decoder.
1.2.0 files will play OK in 1.0.x and 1.1.x software. Though future 1.2.x releases (e.g. 1.2.1) may require at least 1.2.0 decoder, so developers are encouraged to update decoders to 1.2.0 now.
QUOTE(goodnews @ Jul 28 2007, 15:02)

I need to know if I should distribute masters encoded with 1.1.4, or if I should upgrade them to FLAC 1.2.0 for maximum future (and present) compatability[...]
You don't need to upgrade your 1.1.4 files, they will be compatible with present and future decoders.