This thing is freakin' weird! So, I did some playing around with various bitrates and transfer settings. My subjective findings follow. First I imported a CD at 320kbps. When I transfered to my Vaio Pocket, it upconverted to 352kbps. This sounds better than 256, IMO. A bit more nuanced, richer. Then I did Atrac Lossless 256, again upconverted to 352 kbps. I'm not too hot on this one. We know for the time being that the lossless codecs are sort of useless (until that VP firmware update, right, Sony?). I like the promise of a lossless codec; let's hope Sony allow us the opportunity to use it to its potential. Then I imported in PCM, downconverted to 352kbps. This is like a long way of importing the CD initially at 352kbps. This sounds awesome! This is where Sony have been hiding all of the treble and midrange from song I imported at 256kbps! I am only going to do this for a few CDs because, to be honest, this took about 1.5 hours for 4 CDs. I don't want to waste time on converting, because as I finish me collection, my VP will support lossles (I hope!). We'll see. Summarily, I really like having an extra 100kbps, but this whole lossless thing is a mess. I can't wait until I can actually use it! Steve