Converting from WAV, or "converting but secretly not converting" from wav to AAC

Question

I got this particular problem I just found out about. I imported a wav file into iTunes, and I assumed that means it gets converted to whatever format I set iTunes up for (in my case AAC). But when I then sync my iPod, I get the message that the file that was originally in WAV, cannot be imported because it is not in a compatible format. Yet the same song plays fine in iTunes. This does not make sense, unless iTunes does NOT convert files you import into the required file standard, but just copies them in, and iTunes happened to be able to play wav files. But then again, if iTunes is compatible with WAV files, why isn't iPod?
Now, I have to add, I have the file already on my computer, so I just drag the wav file into my iTunes. Does that mean iTunes copies the file over to the iTunes library, or does it actually convert it into the file format set up?

Answer 1

As for importing, I assume you refer to importing via drag-dropping files into iTunes? because according to my preferences, when I insert a CD it DOES convert  to a particular file type.
Kryn, yes, that is the importing that Dave is referring to.  Ripping from CD is a different process.
As far as your WAV file, iTunes and iPod can both play WAV.  They are pretty reliable if it is a CD-quality WAV, but sometimes have trouble if it is a low bitrate WAV such as the kind that come out of voice recorders.  If that is the problem, use a 3rd party conversion tool such as Switch to convert it to an MP3 or AAC.