I know TMV (M mostly) mentioned that at the Apple press event, the iPod HiFi illustrated the "bad" quality of the compressed music on an iPod so I thought I'd mention that iTunes DOES have an import option called "Apple Lossless Encoder" if you wanted it to sound CD quality. Obviously, the files will take up much more space. The iPod supports it.
There are a billion lossless formats out there and, of course, this one will be Apple proprietary but on the plus side, Apple's lossless format is more feature-filled than the rest, including FLAC, which a lot of other players support. Apple's format offers seeking and streaming support which most others don't.
Anyhow, you can have your portability and awesome sound quality on your iPod if your want it and don't mind the extra storage it consumes.
-Kevin S.

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