>This is exactly right. Lossless compressed means just that. >The compression is later reversed when the image is processed >in NX2 or LR3 etc, and out comes the original NEF which is >identical to the uncompressed one down to the last bit.
The disadvantage is processing time. It takes longer to compress files, so your buffer empties much slower. Some older cameras, like the D1x even with buffer upgrade, are useless in compressed NEF mode for most uses due to this.