Before this option was added for iPhones/iPod touches, my 16gb Touch would fill up to about 14gb worth of music. Once I enabled the option, my music size shrunk down to 7gb, half the original size. That was truly wonderful as it allowed me to add more music onto the iPod. However, when I try to add a few more playlists (with maybe 200 more songs) iTunes gives me an error saying that the size of the music I'm trying to transfer is larger than the capacity (something like 14.94gb of music while the iPod can only accept 13.24 of music). I get the feeling that iTunes doesn't recognize the shrunken filesizes, it seems to use the original filesizes as its measurement. This makes it difficult to add any more playlists to my iPod. Has anyone else come across this with any success? I'm stuck, unable to add music and I'd really like to be able to. Thanks!