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Is this how most people put files on their portables or do they just use the same sized file and not worry about size.
Some do. Depends on whether they care about the music quality.
Personally, I was never into portable flash players because I care deeply about the quality and can't stand to listen to songs at 96kbps. Not until hard disk players like the Karma came around were portables interesting to me.
Some portables will automatically do it for you in their loading software: Transcode as the songs are being uploaded. Since you're thinking about getting a portable, perhaps you could research and find out which ones have this feature.
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If I decode back to wav, will the resulting wav be the same as the original?
No, you're missing the concept of what lossy compression is. Click here.
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