Dude...you know that converting 128kbps files to ALAC does not make the files lossless, dont you? Lossy -> Lossless Codec -> Still Lossy.
The encoder cannot fill in magic for the signal already lost when the music was encoded to 128kbps.
He's pulling your leg (must be) .....
For one the iPod built in EQ is atrocious on all of the models I've heard - it seems to be the main reason most people I know leave it turned off. I always leave mine flat and use the add on apps (Equalizer or Equ) if I need to adjust anything Then there's the comment regarding converting 128 mp3 to ALAC. That brought a smile to my face. He was just missing the appropriate smiley