I have put some effort into searching what file formats to use Marc. I found Mp3s at 120 bit rate to be crappy, and I found that apple lossless , which is a compressed format , but without anything removed, to be too big ....I have found the apple format AAC (which I think are mp4's)at at 160 bit rate to be much much better....You may have to stick with apple and itunes , as I think the mp3s are more universal, but I here that all these formats are evolving and within 5 years the ipods will be limitless in terms of storage space... Also , the Ipod is quite a good user friendly interface with your music collection , once you learn how to customise the genras and other identifying bits of information (which is quite easy) and I cant believe that there isnt a cheap type of new receiver which is basically a bigger version an ipod...but maybe thats wghat your friend has..