I'm not an authority on Itunes, but I have some friends and relatives who know I'm "into music" so I get some gift cards. I believe that the $1.29 songs are DRM-free, but I believe the $.99 songs still have DRM. But I believe that even the DRM-free songs still download as AAC files, which means that I still have to manually convert them to MP3.
As an example, I have some songs from Annie Haslam's "It Snows in Heaven too" that I purchased from Itunes some time ago. When I right-click on them Itunes won't convert them from AAC to MP3 -- it displays an error message about not being able to convert protected files. Those songs still show up in Itunes as $.99 songs, so I assume they still have DRM. My Zen Vision:M won't play AAC files, whether DRMed or not, so this is doubly inconvenient. (Note: Even with the older protected AAC files it is legal to burn them to audio CDs -- I think the limit is/was 3 times. It is then legal to rip the CDs to MP3s -- in fact, in the beginning this was the officially approved method for non-Ipod users to use Itunes.)
EDIT: I should also add that no matter where I buy music from, I
always burn them to CD. Hard disks fail, viruses can be nasty ... it's just cheap insurance, IMHO.
Edited by Capn Easy, 31 December 2009 - 10:15 PM.