I agree with Tvad that, if you are taking the sound from the earphone out of the ipod, you likely won't hear much of a difference b/w lossless and a 320VBR. On the other hand, if you take the sound from the line out (which makes a HUGE difference) and if you have high quality cables, headphone amp, and earphones, you will definately hear the difference and you will want less compression than any MP3 codec will provide -- i find that anything other than lossless is a disappointment. One thing I do to preserve space is to selectively synch the music on my computer so that not everything goes to the ipod all the time (e.g., some of those 80s hairbands are in low enough rotation at this point that i don't feel i am losing anything by keeping them off the ipod).
there are a few lossless codecs that are actually slightly more compressed than Apple - such as FLAC -- that i believe ipod will suport. the space savings won't be major, but may give you a few more discs on 8GB of memory.
if you haven't checked it out yet, i suggest you visit www.head-fi.org. you will find out all you ever wanted to know and more about the world of portable music.
there are a few lossless codecs that are actually slightly more compressed than Apple - such as FLAC -- that i believe ipod will suport. the space savings won't be major, but may give you a few more discs on 8GB of memory.
if you haven't checked it out yet, i suggest you visit www.head-fi.org. you will find out all you ever wanted to know and more about the world of portable music.