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Yes, but why not just download iTunes and compress the WAV file to a tiny portion of what the WAV file is? That way, you can get full use out of the space on your iPod.
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WAV is lossless. MP3 and AAC is lossy -- that is, you lose some amount of sound quality when compressed to those formats. You lose more quality with lower bitrates (higher compression). WAV and AIFF are both lossless. That is, the quality of a WAV file will be exactly the same as the bits that came off the CD in the first place. Apple has added the Apple Lossless Encoder to QuickTime and iTunes in the last year. With ALE, you can compress the music coming off of a CD to about 50% of its original size with no loss of quality. Still about 5x to 7x the size of compressing with 128k AAC (the default). Personally, I used 192kbps AAC to compress my CDs. Without having a proper listening environment, it is impossible for me to tell the difference between the origianl CD. Now that hard drives are dirt cheap, I'm going to recompress everything with ALE.
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