Portugal11: What you are proposing is very cumbersome, but certainly possible. You will want to make sure that you have configured itunes to selectively synch to your ipod. the best way is probably to specify that itunes only synch "checked" files. Then you could make sure that only the MP3 files have been checked in your music library.
As for the import settings. i highly recommend 320VBR with Highest as the setting for quality. You find these in the Preferences tab. The other settings for importing can be left "auto" (which i believe is the default).
All of this advice is premised on the thought that you will be using the line out with upgraded earphones and an external amplifier. If, on the other hand, you are simply using the stock earbuds that come with the ipod run from the earphone output the, IMHO, it doesn't much matter what settings you use b/c it will all sound like crap anyways. Again, that's just my opinion.
As for the import settings. i highly recommend 320VBR with Highest as the setting for quality. You find these in the Preferences tab. The other settings for importing can be left "auto" (which i believe is the default).
All of this advice is premised on the thought that you will be using the line out with upgraded earphones and an external amplifier. If, on the other hand, you are simply using the stock earbuds that come with the ipod run from the earphone output the, IMHO, it doesn't much matter what settings you use b/c it will all sound like crap anyways. Again, that's just my opinion.