iTunes can use Apple Lossless and AIFF which are lossless formats. It cannot, however, use FLAC files natively, which I find a severe omission.
I believe that things purchased from the iTunes store are compressed files (someone may need to correct me here, since I've never done it). But nothing stops you from purchasing a CD and then ripping it into Apple Lossless.
Michael
I believe that things purchased from the iTunes store are compressed files (someone may need to correct me here, since I've never done it). But nothing stops you from purchasing a CD and then ripping it into Apple Lossless.
Michael