no problems here...
i also was waiting for this. both quality and DRM were keeping me from buying more on itunes. i listen to mostly "classical" (a unitary label i find funny since it's applied to about 1,200 years of music from pretty much every country in the world), and i find that 128kbps encoding is particularly unkind to pieces with orchestral strings. i'm not a pirate, but i also don't like having limits on how often i burn play-lists or keeping track of computer registration, etc. and i think that good music is worth paying for. so this is perfect for me, or it will be when the entire itunes collection becomes part of itunes plus.
had no problems with the install (backed up my library beforehand as always, just in case). i found the upgrade interface very clean, easy, and unambiguous, but as my total was $5, i just went ahead with upgrading everything and didn't attempt to do individual tracks, so i can't comment on that process.
in case no one's pointed it out yet, the upgrading works as one might hope, in that (in addition to asking you politely what it should do with the old files) it makes sure that your new DRM-free files have the same metadata as the old ones (even the "last played" field), and that they show up in every playlist the old files were in. perfect!
my 26 downloads took a while, and the last one seems to be stuck and refusing to restart, but i'll just try again later when there's less traffic.
i'm very pleased.
Is there higher quality kilabytes per second setting with this new update? 320kps and beyond for MP3?
do you mean in encoding (ripping) preferences? you can go up to 320kbps for mp3 or AAC (only to 256kbps for AAC w/ VBR). i think that's the same.