Can you point us to a web page where it talks about supporting mp3 CDs?

Edit: No, wait. I found it:

You can play your music CDs in your car and on home stereo systems. iTunes also lets you make MP3 CDs, though iPod makes them a little less useful. Audio CDs play in CD players like the one in your car or home stereo. MP3 CDs play on Mac and Windows computers and in MP3-compatible car stereos and CD players.

Chances are that they're just talking about a feature of iTunes, not the iTunes Music Store. The iTunes Music Store only provides encrypted AAC files and the only way to get those onto the Karma is to reencode them, which will lead to losing quality.

There is an application that will remove the encrypion from the AAC files to make them plain AAC (which is MPEG-4 audio), but the Karma doesn't support that format, either. In fact, probably the only portable player that does is the iPod. But getting AAC support on the Karma could happen much more readily than also getting encryption support on the Karma. I doubt either will happen, though. Maybe the empeg guys want to chime in on this one.