I was at the Apple store today, and I seriously considered getting a 1GB Nano, but no one there could answer this question for me, so I figured I'd come here before buying. On my shuffle, under the iPod options, I can set it to convert the songs to 128kbps AAC files before loading them on the shuffle in order to cram more in. Is there a way to do this on the fly with the Nano? I couldn't find any such option in iTunes on the store Macs with Nanos hooked up. Thanks in advance.