Simple question. Is it bad to have the iTunes volume at full and control the system vol. Does this effect the sound quality? I am just curious why iTunes ships with its volume lower.. thanks!
Adjust the volume to suit your needs. There is no recommended or ideal setting; only what works for you. It doesn't matter where the volume is set when you first install iTunes.
Turning the volume too high for any given speakers only distorts the sound that you hear. It has no effect at all on the music files themselves. Just adjust the volume to whatever level is comfortable for you and doesn't sound distorted.