> 64kbps (which is simular to a mp3 in 128kbps) without reencoding;
> which should be good enough for most of us.

It really isn't very good, and I wouldn't consider (a) reencoding files just 
for use on the Neo, nor (b) starting future encoding at this low rate.  I like 
my music and video at a high quality so that i can use it on multiple devices 
and not notice major compression!  Files encoded on my home computer are likely 
going to be used on that computer, also on the Neo, also on laptops, also 
streamed to my television...

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