Managing both Lossless and AAC music folders

Hello, I am trying to have two music folders with identical songs from my imported CDs, but with different encoding formats. I would like to have one folder with Apple Lossless encoding, so I can stream high-quality music to my home stereo. I would then like to have another folder of the same music, but converted to AAC compression so I can load that music onto my iPod.
Does anyone have suggestions as to how I can do this? I know I need to import the music from the CD first with Lossless encoding; and I've done this. I now need to find a way to convert all these files (as a copy) to AAC in a different folder/playlist so they can fit in my iPod's limited storage space.
Thanks for any help you can provide!
Tyler Stableford

Managing two folders the way you want to do it, is not possible in iTunes itself.
There are 3rd party scripts and applications that might do it, for example iTunes Library Manager.
If you like to have both formats available at the same time, you could do next:
Import all CDs in Apple Losless.
Take care that all info is the way you like; if you convert them, you have to correct wrong info twice.
Convert all lossless tracks to AAC.
Make two Smart Playlists (e.g. iPod music and Home music)
Include a rule in the iPod playlist not to contain 'Apple Lossless audio file'
To give an example:
I don't care about what's all in the library; it's the main container for my multimedia.
So I've set some rules for my 'Music Library', a Smart Playlist.
I've set it to:
Match all of the following rules:
Podcast is false
Kind is not mpeg audio stream
Genre does not contain audiobook
etc.
You could make two almost identical playlists.
'Home Music' containing the rule: Kind is not Apple lossles....
'iPod Music' containing the rule: Kind is Apple Lossless...
You can make other Smart playlists which depend on the contents of these two 'music libraries'.
Hope this helps.
M
17' iMac fp 800 MHz 768 MB RAM Mac OS X (10.3.9) Several ext. HD (backup and data)

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