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Rorschach -
When you import an album, or burn it - which is what I assume you are doing - you can choose which file format the songs are encoded (either MP3 or AAC).
If you purchase music from the iTunes Music Store, the songs are all in AAC format. This works great for playing the songs through the iTunes interface or playing on an iPod, but doesn't work if you use other players (to my knowledge).
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