Creating AAC files.... changed w/9.02?

Hi there,
When I get my songs from iTunes, they are usually about 8 mg. I used to select them and use the menu option "Create AAC version". This would create another file about half the size. Then I would delete the big file and just keep the little one.
BUT, with 9.02, the files are almost the same size after creating the AAC version????
I looked at the properties and the bit rate is now 256.. where as before it was 128 (after AAC conversion). So, how do I set iTunes to use the 128 bit rate so the files are smaller when I create an AAC version?

Go to iTunes -> Preferences -> General.
Click the "Import Settings" button.
Choose these settings:

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