Lossy compression such as MP3 work by removing certain high and low frequencies and other aspects and artifacts of sound. The lower the bitrate, the more that is removed. Smaller files, lower quality. The binaural beats in Holosync are carried by low frequency sound which will be lost in compression...

Higher bitrates remove less- larger files but higher quality.

I do not know about the atrac3. News to me. There are lossless codecs such as APE but so far they require too much processor power to run on portables and even older desktops. Maybe some day.

If you rip to MP3 at 320 constant bitrate, true stereo, it should be fine.

All of these are Freeware:
Exact Audio Copy is a very good ripper, you will need Blade or Lame-Very good- highly recomended for audiophiles! My favorite.

Another is called FreeRip- very easy to use. I have used it for music but have not tried it with binaural beats, it should work.

Nero is just ok for ripping. Avoid Windows Media Player for this task, it is a good player but a horrible ripper. Havent got much experience with Audacity...

Hope this helps.

vitaman