A couple of points.
In iTunes (at least for Mac), it is possible to transcode from one lossy format (e.g. MP3, AAC) to another. It probably isn't worth transcoding from 320kbit to 256kbit MP3/AAC files though. You won't get much of a space savings, nor will you get much of a increase in battery life.
Unless you're using a line out from your iPod, a decent headphone amplifier and decent headphones, there probably isn't any reason to use anything much higher than 192 to 224 (this is from personal experience). Yes it is possible to hear a difference, but *I* don't think it's worth it.
It is not recommended to transcode from 320kbit to 256kbit. Whenever you encode music to a lossy format (e.g. MP3), you lose audio information in the process. Going from the original file format (.WAV) to 320 to 256 results in a more degraded file than going straight from CD to 256. The link for the script that converts Apple Lossless to AAC files won't work unless the original file is actally an apple lossless file and you're using a Mac. It won't work if you're converting from 320kbit AAC, it will not work.