I chose to use FLAC for the same reasons stated by gband. Two reasons stand out though. 1) I can certainly tell FLAC music sounds better than mp3s at 192kbs when played on my HT gear and 2) I can create burned CDs that are the same quality as the original. However, I really like my iPod for air travel, when I'm doing yard work, on backpacking trips or plugged in to my old Kenwood receiver in my garage when I'm woodworking. In those listening environments the iPod playing mp3s is awesome. I've gone so far as to duplicate my FLAC library in mp3 for easy transfer to my iPod using iTunes. I'm a supporter of mp3, however for me its all about enjoying music with a technology that is appropriate for the location. To paraphrase Dirty Harry: "A codec has to know its limitations".