Automatically compress iTunes music on Nano?

I have recently upgraded my iPod Shuffle (1st Gen) to a new Nano (2nd Gen) and discovered that I no longer have the option to automatically compress music in my library when it is copied to my iPod... at least I can't find the option.
I keep my music in ALL format which means I can only fit about 300 tracks in 8GB if not compressed. The iPod shuffle had an option to automatically compress synchronised tracks to AAC (very nice feature) which appears to be missing in iTunes for the Nano.
Am I just missing this feature or has it been excluded on the Nano?
Cheers.

Thanks william, but that is the general preference for importing into my library. I want to keep importing as ALL and just have the sync'ed tracks converted to AAC... the shuffle had this option.
Thanks for your reply anyway.
Rod

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