With disc space so cheap I made the decision to rip using a lossless format and haven't looked back. I do convert some of my music to AAC for my 8GB ipod when the Classic is too heavy (backpacking or working out) and it may be just me but I prefer AAC over mp3 (192). I don't have the molded UE but it sure would be nice especially on planes. I use the foam tips on mine and I can get pretty isolated from the constant noise and the ever present 2-year old in the next row.