Automatically Convert to 128kbps AAC on Sync with Nano?

Hello, my sister owns an iPod Shuffle and I own an iPod nano. On her Shuffle she has the option to Automatically Convert Higher Bitrate Songs to 128kbps AAC when she syncs. Is it possible to have this option on the nano? I don't see it? This would be very helpful as right now I have all my songs ripped off CDs twice, once in Apple Lossless format for playing on my computer, and once at 128kbps AAC to sync to my iPod, which makes for a rather messy library and wastes hard drive space! I find it hard to believe they would not have this option on the more expensive nano.

Well that bites doesn't it?
I've done a little bit of reading and I now have a theory as to why this is. iTunes does this for mobile phones too, and I think it's because mobile phones and the Shuffle cannot play all formats (the Shuffle cannot play Apple Lossless files) so iTunes includes this option for them. It seems a bit of an oversight not to have it for other iPods too.

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