Apple released iTunes 4.5 with a bunch of new features. One of the most interesting is lossless encoding. I'm looking forward to playing with that, even if it might not be terribly useful with my ~25GB mp3s and a 4GB iPod.
After upgrading I recommend you hurry to the preferences and disable "Show links to Music Store" and enable "Group compilations when browsing". The latter feature makes the "browser" let you browse albums properly, awesome!
You need the iPod update 2004-04-28 to play the lossless files on the iPod (and to get "Improved playback performance")
The iTunes icon is still green. :-)