I'm _pretty_ sure all the songs sold on the iTunes store are 128 kbps Protected AAC (.m4p files). I've found (in a couple instances) the song off the iTunes store sounds better than if I ripped it from the CD. I had heard that it was because the songs on the store are ripped from higher quality master tapes and/or the encoder used by Apple is a bit better than the one used in QuickTime (shrug).
Yeah I had a listen and they dont sound bad by any means, and I guess its keeps them small.... just a bit disappointing considering everything else about the system looks and feels top notch
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