iPod/iPhone audio format

Nerdy Norm

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I'm planning to use an upgraded 480GB iPod video to hold my music collection, which is stored in ALAC (Apple Lossless) format.

I've read a lot of posts discussing which formats are/aren't compatible with MMI Plus, but I'm guessing these must relate to playing music via either an SD card or a USB stick. Since the iPod/iPhone's 30-pin connector outputs only analogue sound, it mustn't make any difference to the car which format is used.

Sound about right?
 
I use a 5th Gen iPod with blue cable and all formats play on it no problem.

Lossless sounds significantly better than an MP3/AAC file...especially on the standard audio system
 
Great, that's what I was expecting to hear.

Just wanted to double-check before parting with a not-inconsiderable amount of money for the iPod upgrade :)