PhatMac and AAC

[Tweaked]

Recently, I purchased an Audi with a Phatbox installed already.  I'm sick of listening to the previous owner's music!

I'm currently running a MacBook Pro 2 Ghz Intel Core Duo with OSX 10.4.11.  I downloaded PhatMac and it integrates perfectly with my ITunes.  However, my entire ITunes library is in AAC, not the required MP3 format.  I understand I need a plug-in, but all the plug-ins I've found are for Windows-based MMS programs.  I found a solution which had a convertor for Quicktime to turn the AACs into MP3s, but the link is dead.  Additionally, I much prefer the sound-quality of AAC over MP3.

Can anyone point me in the right direction?  It's a large expense to run Windows XP through Parallels on my Mac (about $200 for windows and $90 for Parallels; I do not have Boot Camp) not to mention the hassle of somehow moving my entire ITunes library over to the Windows side.  Thus, I'd like to use Phatmac, but I need an AAC plug-in for my 20g DMS.

And last, is it at all possible to use Phathack software to make use of a larger DMS (120g or 160g) without Windows?  Can it be done with OSX 10.4?

Thanks in advance!