Although the AAC format gives excellent audio reproduction with minimal compression a word of warning: if you have any other mp3 players (non ipod) it is unlikely that they will recognise and therefore be able to replay this fairly apple specific format. Further more if you wish to play these files on a pc which is not running itunes, it is likey that you will have to download an aac codec in order for them to be recognised. Although recognised as an "inferior" format mp3 (lame)is a much more portable compression and therefore will play on 99% of pc's/mac's/mp3 players. If you convert your wav files to a mp3 bit rate of >192kb/s I don't think you will notice a difference in audio quality. iTunes allows you to rip to an mp3 encode, just select it from the drop down list rather than the aac and select a bit rate of 192kb/s (or more) from the setting tab, the default is 128kb/s. Your mp3 encoded files will also take less space on your ipod.
Just thought you may like to know of further options...
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Fujitsu Siemens Amilo 2.8GHz. 1GHz. RAM Windows XP 5G 60Gb
Fujitsu Siemens Amilo 2.8GHz. 1GHz. RAM Windows XP 5G 60Gb