Godfrey DiGiorgi wrote:

>MPEG-3 can be fairly lossy or fairly tight, depends what bit rate you  
>use in rendering it ... much like JPEG. 196Kbps MP3s are not very  
>lossy at all. 

196 kbps files are supposedly the equal of broadcast FM stereo radio. 
You can got to even higher bit rates for even better quality and 
*variable* bit rate bor optimal file size/quality.

>That said, there are MPEG-4 (m4p files) encoded with  
>AAC that are much smaller and have lower losses, and there are  
>several lossless compression algorithms too, all of which get called  
>"MP3s" as they are all downloaded from the same sites.

FLAC (free lossless audio compression) seems to be the most popular, 
though I think you can't beat Ogg Vorbis for simply having a great name 
:)


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