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Aptmunich

 
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Member Since: Mar 09, 2004
Location: Munich
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Go to iTunes->Preferences->Advanced and you can select your own bitrate.

Then select the wav files you want to encode and right-click 'covert to mp3'.

It'll create an mp3 of the wav file and you can then go ahead and delete the original wav.

I wouldn't recommend re-encoding your mp3s to a lower bitrate, you'll lose a lot of detail in the audio and won't save that much room.
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