I have this new feature selected when syncing my music to my iPhone 3GS 16GB. It allows me to have an extra 600+ songs on my iPhone, which is great... but theres one huge problem I'm having. Before I had this feature selected, iTunes would always leave about 300MB of free space on my iPhone, leaving space to take pics, vids, and download apps and songs over 3G or Wifi. With the "Convert higher bit rate songs to 128 kbps AAC" option selected, iTunes leaves less than 5MB of free space on my iPhone, making it almost impossible to add anything new to the iPhone. Is anybody else having this problem? Is there a fix for this? Thanks in advance!