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Is the lossless on just for home use or on the iPod too? Because I can't imagine a scenario where a lossy file wouldn't sound the same as a lossless in everyday listening, like on a plane, bus, in a car, etc.
 
I believe it's mostly for home use. Because lossless files tend to be quite big.
 
not if you have some high quality earbuds that can isolate the the sound.

Unless you're listening in a room with dead silence and concentrating intensely on every split-second of audio, and then assuming you can even tell a difference, and the earbuds are in the several hundred dollar range, then it's probably best to just go with lossy over lossless.
 
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