I’ve got a 80 gig iPod which isn’t anywhere near full of music. So, I decided to try lossless audio and see if it sounded any better. I converted one of my CDs to the Apple Lossless format that the iPod can play, and it is much better. I could hear a difference between the lossless and the mp3 version of the same song. There is a trade off in size; an entire CD in Apple Lossless takes about 300 to 500 megs versus 60 to 80 megs of a high bit rate mp3. But the increased file size is definitely worth the improved sound quality.
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