When I tried to convert a 32kHz audio Wav file into an AAC 256 file, iTunes 10.7 gaves me the error message "The current encoder settings for bit rate and sample rate are not valid for this file". I'm using the AAC>Custom>Default setting (where sample rate shows "auto"); 10.6.2 (or 1?) did not complain. I'm not installing iTunes 11 right away. Can anybody confirm this problem? I signalled in on apple.developer.bugs a few weeks ago.