When you import into iTunes on a Mac, (don't use or know about Windoze) you can select how iTunes imports. You can import in the same file format as the CD, AIFF, with no loss of data, or you can import with a compression scheme. I agree with previous statements that AAC sounds better than MP3. If you choose a compression such as AAC, you then get to specify the amount of compression. This is data compression, not dynamic audio compression. This is expressed in kps or kilobits per second. The higher the rate, the better the sound, and the bigger the file. 128kps seems to have become a defacto standard for a stereo file. I use AAC at the max rate of 320kps. The resulting files are about 1/5 the size of the source, and sound pretty damn good for just about everything but the most dynamic and quiet classical music. BUT! it should be noted that you can also import into iTunes using Apples Lossless compression. File size is cut in half, and the resulting CD's that you make are bit for bit identical to the source. The question you need to ask yourself is, are you digitizing your collection to serve as a convenience for listening, or as an archival copy of your music? I find AAC at 320kps to be wholly satisfactory for any listening application. If you want a true archival copy, use the Lossless compression. Storage is cheap, but a couple of huge external drives, and use one as your iTunes library, which you set up in the prefs, and use the second one as a mirror of your collection, put it in a fireproof box in the garage. Have fun!