ITunes 3 newbie

[Jay Friedland]

New to the list, new to OS 10.2.3 and itunes 3.01, so if these basics 
have been covered before please direct me.

1) downloads burned to CD w/Toast, save as .aif files. Any SW to 
convert .aif to MP3 to use with iTunes? Can these CD's be used later in 
iTunes and somehow pick up ID Tags, or i-net info? Otherwise, it seems 
it is all manual.

2) As I use playlists for compilations, not albums, what's the best 
procedure to organize from download folder to itunes library, then to 
playlist. I download to Firewire external drive and store there. I've 
wound up duplicating entries, or having entries not make playlist, so 
they float in the library, etc.

3) I had considerable trouble bringing iTunes 2 playlists over to 3 
(have over 70 playlists). Now that it is done, what is best backup 
scheme to protect myself?

Thanks,
Jay F.