Why does the music from my CDs take up so much memory?

I'm new to itunes, and having just recieved an ipod (an 8 GB nano) for Christmas I started uploading my CDs to itunes yesterday.
I've uploaded 15 albums, containing 205 songs, which is 12.4 hours of playing time. According to the information at the bottom of my itunes, it takes up 7.38 GB of memory. 8 GB of memory is supposed to hold 2000 songs, so I don't understand why 205 songs have nearly filled the memory. Can anyone help?
Thanks,
Kate

Maybe it has to do with the encoder you used to import your CDs to the computer. If you use a lower encoding (for example, mp3 or aac at 128 kbps) your iPod should be able to contain approximately 2000 songs. If you use a higher encoding (like mp3 or aac at 192 kbps or higher bit rates) , your songs will take much more space but the sound quality will be higher. To check what encoding you're using you can select a file, right-click, and click on "get info". More instructions on how to choose a new bit rate can be found at these links: http://www.ehow.com/how2019280set-import-itunes.html or http://www.dummies.com/how-to/content/how-to-choose-an-itunes-encoder.navId-3232 15.html. After doing that, you'll have to import your cd's again using the new encoder.

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