I just started ripping some of my CDs onto the HD for use as a Jukebox. So far, I am very pleased at the quality...pretty damn good for 128 Kb/sec bitrate. I would say pretty much identical to MP3 encoded at the same bitrate. I mean, it's not up to the level of my hi-fi transport, but then again, my hi-fi transport can't hold 100+ hours of music. 2 minor annoyances (though I can't really complain, cause the jukebox thing is basically like the cherry on top anyways)...1) naming tracks is a b!tch. I wish they would release a keyboard for the Xbox. 2) Mixing and matching between soundtracks is a chore. Once again, can't complain...cause compared to the $900 jukeboxes from HP and SonicBlue, $0 ain't half bad.