It doesn't matter if the AAC files are gapless; I don't think the iPod is capable of true gapless playback. Maybe it can crossfade, but that's not good enough.
And I dunno... it seems more likely that the skipping is a result of an error in the ripping process, and not an encoder problem. iTunes isn't as reliable a ripping program as EAC.
If you insist in ripping using iTunes for your iPod, I recommend using their AAC encoder. iTunes' MP3 encoder isn't really that great, but their AAC encoder is apparently the
best one there is for that format (as of 2004).
Just to note,
iTunes Encode lets you use the iTunes AAC Encoder when ripping in EAC. I have not tried it yet, but I've heard good things. (
iTunes Encode thread at Hydrogenaudio)
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