Airport Express, iTunes and streaming Apple Lossless format

I'm currently streaming my music wirelessly from iTunes to the Airport Express. Most of my music is in MP3/AAC format but I'm going to do through the tedious process of ripping it into Lossless format
What I want to know though is when iTunes streams it to the Airport Express does it re-encode it on the fly or does it stream the Lossless format? The reason I ask is that I have a monitoring tool that monitors my upload speed from my laptop over the wireless connection - when I stream a lossless file it's showing an upload rate of approx 150 kb/s, when I stream an mp3 it shows an upload rate of approx 140 kb/s - very similar. The mp3 is encoded at 192kbps and the lossless file is ~1000kbps.
I was expecting a huge difference in the strain on the wireless network but it doesn't seem to show any difference. Strange?? Comments/explanations please!
Dell Inspiron 700m   Windows XP  

One of my friends did a similar thing and found out
afterwards that his media streamer couldn't cope with
the Windows Media lossless format and would keep
dropping out. Naturally he only discovered this
after ripping his entire collection - whoops!
It is possible with iTunes to convert an entire collection from Lossless to ACC (or mp3 for example).
I recently did this, as my ripped collection on my desktop is in Lossless format, whilst I wanted it in mp3 format on my laptop as I needed to save disk space and the speakers on the laptop aren't much cop anyhow.
Change your iTunes importing preferences to mp3.
Select all the songs and convert selection to mp3.
Your music library will then consist of all the tracks in both lossless and mp3 format.
I then deleted the lossless format version.

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