Help ... new to ipod mini

Hi,
I just received an ipod mini for my birthday and I am trying to figure out how to use it and transfer songs. I read that the ipod can hold up to 1500 songs, but I noticed that one CD is 500MB! How do I make the song files smaller? How do I convert songs in my library to MP3 or similar? I thought the ipod would automatically shrink file sizes when it imports the songs from CDs into the library?
Caroline

HAPPY BIRTHDAY
It does. iTunes automatically converts your music and CDs to MP3 (if it is not already in that format) using typically a tenth of the space an audio track needs on a standard CD. I got up and running in less than half an hour following the tutorials at http://www.apple.com/support/itunes/windows
click on help menu from within iTunes.
Hope it helps
Steve

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