Since you manually control your device, I would think that only music copied after the setting change is made would be converted to 128K. All that hitting Apply probably does in your case is record the setting change.
So after you apply the setting you want, try copying some music over and see what it does to that music.
Exhumed Identity wrote:
Am I to assume that these people have their iPods synced with iTunes?
If you are asking are they automaticlly syncing, no, you cannot assume that.
They may have simply re-added everything to their iPod.
Note that you can autosync selected playlist and still manually drag songs to the iPod.
I find this easier to do.
Create a few playlists I want for the iDevice. Then simply add/delete songs from these playlists.
Next time I plug in the iDevice, it autosyncs only those playlists.
And by using playlists, I can use smart playlists which use these playlists to show me what is NOT on the iDevice.
To clarify what Deavon stated, in order to have the songs convert, you need to add/re-add them to the iPod, If they are already on there, they will not convert.
Yes ages ago as I don't need the CD's that I ripped to be stored on my Mac as I still have the physical CD's to listen to whilst at home, and then on the iPod away from home. It was more beneficial this way as my old mac only had around 250GB of hard drive space. Not really much of an issue anymore as my new Mac has a terabyte, so maybe I'll just start again when I have a free weekend.