If I repeat the above scenario with an AIFF file that resides on my hard drive, the final AIFF file is again larger than the original. I did not use a playlist for this encoding.
What I did notice, however, was that when I imported a track from the CD, the resulting file extension was aif (3 letters) and so was the final encoded AIFF file. In the case of the files on my hard drive that are giving me the apparent problem, they all have an aiff extension (4 letters) while the final encoded AIFF file is again the 3 letter extension of aif. I can't imagine why that would make a difference.
Anyway, thanks for your input. I Think I will call it a day (night) and work on it tomorrow.