This is why I stopped purchasing music from iTunes. Too many restrictions. And iTunes Plus still is NOT DRM free as they claim. Every song you purchase or "upgrade" contains your email address - so if you share them online, you're exposing yourself to legal action should the wrong (or right) person get a hold of those files.
You could try checking out your local library. The Phoenix Public Library offers a ton of music CDs (you would be surprised at the selection). Check them out and rip the songs you want to "replace" - at least then you have quality control over the import process as far as encoding goes.
Otherwise, I recommend using a DRM-stripping application.
iTunes is great. It's convenient and has an awesome selection. But the restrictions are just not worth it.
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