By 'raw' recordings' we mean your audio files as recorded on disk, before any track-splitting or audio cleanup. This is normally WAV format, but lossless FLAC will be an attractive alternative once we make it available as it can save about 35% on disk space without losing any quality.
After defining track breaks, declicking etc, you then ask VinylStudio to generate your split-up tracks. You can choose to save them in whatever format you choose, irrespective of the format you recorded to. This is currently limited to WAV and MP3, but, again, FLAC will be offered as an option as soon as we can.
How long? Well, less than 6 months certainly, unless something unforeseen happens. What you could perhaps do in the interim is save your split-up tracks in MP3 format. VinylStudio offers high-quality VBR encoding which gives excellent results. Then, when FLAC comes along, you can save your tracks again (it just takes a couple of mouse clicks) and download the new versions into your player.