Hi there,
I run my iPod in lossless (3000 tracks)
Having struggled with various issues surrounding this I can offer some general advice.
Conversion to ALAC (Apple Lossless Audio Codec) can be accomplished in three ways that I know of.
1 - In MC with external encoder set to use the iTunesEncode shim.
2 - In dbPowerAmp converter. The Apple Lossless works sometimes, but often has to be followed with a m4a optimize pass (also in dbpoweramp) to create a fully useable track that can be played with a directshow filter in MC (iPod usage is fine) to enable extra facilities (such as internal volume control). I use DC-Bass as my ds filter. The extra facilities and speed of the Apple Lossless/m4a optimise route makes this attractive for large convertions.
3 - In dbPoweramp use iTunesencode much like in MC. Whilst possible I don't believe that this offers any real advantages.
BEWARE - MC12 does not write tag changes back to m4a files. Your library will get out of step with your files if you make any changes. If this bothers you add your voice to the request for new features.
If you have any specific questions regarding the above I will try to respond . . . .
Cheers
Lossless Dave