Imported music using far too many GBs of storage

I got a 160GB iPod Classic a few months ago and have been steadily importing my CD collection to iTunes to sync with the new iPod. It's advertised as being able to hold up to 40,000 songs. Currently, according to my iTunes, 3000 songs are taking up nearly 25GB of storage space! That seems dramatically out of whack to me. At this rate, the iPod won't even be able to hold 20,000 songs. I figure the problem has to be something with the importing of the music that causes it to take up too much space. How can I fix this going forward and can I do anything to fix the problem with the music that has already been imported so that I don't have to do it all over again? I would appreciate any assistance I can get with this. Thanks!

The answer lies in the small print. Apple's quoted 40000 song capacity is for tracks ripped at 128kbps AAC encoding. If you are using anything higher than this then capacity will be reduced accordingly. If you are encoding in iTunes Plus format, which matches the tracks you download from the iTunes Store, then this is in 256kpbs AAC which means you will only get around 20000 tracks capacity.
Personally I prefer 256kpbs AAC, but the choice is yours - more tracks at lower quality or fewer tracks at higher quality.
There is a solution for your iPod. If you tick the option to 'Convert higher bitrate songs to 128 kbps AAC for this iPod' when you sync your iPod with gouges ti will convert all your tracks to the lower quality before transferring them to your iPod. This allows you to keep higher quality files on your iTunes, but squeeze the max number of tracks onto your iPod. Bear in mind it can take a long time to sync your iPod if you choose this option, so maybe leave it syncing overnight.

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