I googled convert lossless to MP3 the service cost a couple bucks but worked fine copy your current library and convert it so you still have the lossless files
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In iTunes help section of your computer you can search and find:
“Save a copy of a song in a new file format“
(1) Choose iTunes>Preferences, click General and click Import Settings
(2) In the Import Using pop-up menu, choose the format you want to convert songs to and click OK to save settings.
(3)Select one or more songs in your library and choose File>Create New version>Create [format} Version.
The songs will be saved in it’s original format and the newly converted song appears in your library.
You can choose either version to sync with your iPod.
If I remember correctly, you can have iTunes transcode to mp-3 when you move music from your iTunes library to your ipod. If not, download Clementine Music player. Its free and works on Mac, Linux and PC. Install it and look in the tools menu and select transcode music. You should be able to figure out what to do. Its a simple process.
Zd542 is correct.
An easy way to accomplish what you want to do is to to look at the 'Options' window at the bottom of the 'Summary' page that opens when you plug an iPod or iPhone into iTunes. Click on the 'Convert higher bit rate songs to,' then choose the bit rate you want, 128, 192 or 256 kbps. That setting will remain the default for that device until you change it.
Go to the ‘Music’ page in the ‘Settings’ list of the iPod and at the top of the page click on ‘Selected playlists, artists, albums and genres’, then click on anything you want to download. Your higher resolution files will be preserved on your computer and will be downsampled as they’re duplicated on the iPod.