I just got a ipod and was wondering which has a better sound quality to size ratio. Which do you guys prefer to incode in? Whats the difference between the two? I heard aac sounds better and takes up less space than mp3s but don't know if that is true or not.

__________
This is more about the software and its effectiveness than the music. As such, the question is best placed in the Computer Forum. Please see my post of 13 months ago in the sticky advisory thread atop this forum. Also, before posting in the Computer Forum, it may be worth doing a quick search as MP3-type questions have arisen there a number of times in the not-too-distant past. [Benedict]

Here's a decent reference:

http://members.brabant.chello.nl/~m.heijligers/ipod/