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It's an extremely useful facility.
I have a DAB digital radio which can record onto an SD card in MPEG2 format. I record a lot of the BBC's audio drama this way, import the ".mp2" file into iTunes, and I can then just click on it and convert it to MP3. The built-in conversion can handle most common formats: WAV, MP2, AAC, and probably more, too. It converts to MP3 using the same conversion option that have been set for CD imports.
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