I noticed that right-clicking on a track in iTunes brings up a lengthy menu, in which is the option to create a lossless file from the one clicked on. I was under the impression that once compressed a file cannot be restored to a larger size since the missing data was deleted. Yet, here is iTunes taking my 256 AAC track and turning it into a much larger Apple Lossless one. I did a side-by-side comparison of the same song in both formats and heard nothing different, though afterwards I realized that using my iPod touch as the source probably negated any positive effects of the higher bitrate. So, my question is are these true lossless files or is iTunes pulling one over on me?
