I found an easy solution (on my Macintosh). There is a .shn to .flac converter that allows me to convert these .shn files (to .flac). I then put these files into Toast Titanium 8, burn the CD and upload into iTunes without a problem.
Xact 1.62 Audio Compression Toolkit
http://www.macupdate.com/info.php/id/14246
Hope this is helpful!
Cheers.
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