If I deselct "convert songs to 256Kbps" and wait a couple of seconds, then re-enable it, the capacity is correct (6GB free)
If I then sync, towards the end of the sync it suddenyl says I'm 29GB over capacity...but Im definitely not.
Naybody else having the issue since yesterdays OS update?
Never mind. Found it. I had an odd rule suddenly appear in a Smart Playlist that I hadn't set myself.
Retrieving data ...