In this article I talked about the best import settings for iTunes. Since then with the increase in Hard Disk space I now think it’s best to import all your songs using the apple lossless encoder. This still compresses the files by about 1/3 but there is no loss of audio quality at all. With AAC and MP3 files, not matter how high you set the quality, there is ALWAYS some loss of quality. Apple Lossless audio is exactly the same quality as what’s on your CD. Here’s how to import into iTunes using the Apple lossless encoder.
1. Open iTunes and select Preferences from the iTunes menu in the menubar.
That’s it! When you import a CD it will import as lossless.