I currently rip my CDs using AudioGrabber with 3.91 Lossless MP3 codec at 128. I need to free up space on my ipod and was wondering if I could use Wavpack Lossless compression to Trancode the file when it is being transferred to my Ipod. Is there a large difference in size between 3.91 codec and files such as FLAC and Wavpack? I do not like the MP4 codec used with Winamp and would like to use a lossless compression.

HUH? What's a '3.91 Lossless MP3 codec'?
To answer your questions, though, if your file is already a 128K MP3 you're not gonna want to go any lower. As to Wave Pack or FLAC, these are both lots bigger than MP3 files and iPods absolutely won't play them. Generally it's not a good idea to transcode anyway. The quality will never get better and usually get worse. If you want a different format you're best to rip them from your original CDs again.

Lame 3.91 lossless codec. I am saving cds to hard drive computer where size of the files is not as important as on a portable media player. I was hoping to use a lossless type format where I can save som e space on my Ipod without sacrificing the space.

Lossless @ 128?? Is that dual-stereo as well?

Around 320 is closer (from your ears way of looking at it) to lossless so you need to rip at a much higher bitrate for quality.

I rip either to flac or at 640 on mp3. Big files but I like quality, especially from analog sources.

How big is your ipod anyway? even 2 gigs is more than enough if you split the difference and head for around 245.. average song size is close to 10Mb.

Anyway.. try dbpoweramp music converter. You can find it with a little hunting around, or for video then the tool of choice has got to be avidemux2