Converting my Lossless Format music to lower setting for burning/Ipod use

I have all my music saved to a HD in the lossless format and it unfortunately takes up a lot of memory when I want to burn to my IPOD and I don't get as many songs on the IPOD as I should. Is ITUNES set up to allow for a conversion to a lower setting when burning music to back to CD or IPOD so that I can get more songs on the device?
Thanks.

You can convert your lossless songs to a compressed format in iTunes. It can't be done "on the fly" while updating an iPod. Unfortunately the option to "Convert higher bit rate songs to 128 kbps AAC" is only available on the Shuffle. For the larger iPods the files have to be converted in iTunes first or indeed have to been imported in a compressed format prior to transfer.:
How To Choose Import Settings
How to convert a song to a different format

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