Just a quick note about lossless compression. John Atkinson from Stereophile did a quick test once regarding apple lossless compression. The method was take a Wave or other PCM file, compress it, and then restore it (play it back), and compare bit by bit. The result...no difference. If I can find the article I'll post it. It was by no means a definitive test but rather a quick side note.
I see no reason not to use a lossless compression and save space.