FLAC Player 1.1.0 has been submitted, and is currently under review.
This update adds Repeat and Shuffle functions to the player, performance optimizations, as well as the ability to view artwork embedded in FLAC files.
Additionally, support for high quality (24-bit, 96KHz) playback is improved, and should be possible with selected external DACs. USB DACs are showing good results when connected using the iPad USB Camera Connection Kit.
For more information on 24/96 testing, please see the following discussion threads: