Exporting music at lower bitrate to iPod?

I can't figure out if it's possible (it must be!) to take my apple lossless files on my hard drive and move them over to my ipod at a lower bitrate so I can fit more music onto the ipod.

Yes it is possible. just a few extra steps.

First select new ripping format:

in iTunes:

1) iTunes>Preferences>Advanced>Importing>"Import using">AAC or MP3.

2) in the Library...Music window: select the Album/CD that you want to convert.

2a) Select the Album/CD tracks using Command or Shift key for all tracks desired.

2b) From menu bar: Advanced>Convert selection to AAC (or MP3, etc.)

now you will have a re-imported version of the CD in your iTunes library. Select those new lower bitrate tracks and drop them into your iPod. Delete the lower version from the main library when finished (if desired)
Be sure to set up smart playlists that separate by format.
i'm trying it now...it's going to take a while.

Thanks in advance!
or buy Media Monkey and it can convert your lossless files on the fly to a lower bitrate for you ipod..