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I plan on looking at WASAPI support using BASS player in 1.3.

Does this not work if you change the player to directshow and install something like madFLAC ? (Possibly using MP audio renderer?)

My main HTPC setup is on XP so nothing I can test there.  Dev machine is win7 but the audio device in there does not seem to work in exclusive mode.   I have a new machine on the process of being built and will hopefully be able to get something sorted