check your rip settings in itunes..change it to mp3...highlight the songs you want...right click and there should be an option to convert to mp3...itunes does the rest...and it should put them all neat in an itunes folder in the "my music" folder
its a real bum of a way to stop it doing it you have to plug the ipod in...go into ipod in the options menu..and i think its the auto update or sdomething like that...job done...i did mine as soon as i got my ipod...1st gen..also had the first version of itunes so im sure it should still be there unless theyve just got rid of it doing it