Qestions: iTunes Downloading & iTouch as a Remote

FIRST: When/if you purchase a song/"album" from the iTunes' Store and your personal iTunes setting is set to import in "Apple Lossless", are the songs from the "store" sent to you in Apple Lossless? Or are the iTunes files preset to a standard and will only download at only one specific codec? And, if so, what codec are iTunes songs/albums sent out as?

SECOND: For those using an iTouch as their iTunes remote, how/where do you set the iTouch volume slider? When I have it "up all the way" the music has a strain to it regardless of my own pre-amp's volume (almost) and I tend to think the iTouch volume set at 75% with the pre-amp volume turned up more to compensate for the overall volume sounds better....Comments? Should the iTouch volume be bypassed in some way that I am missing?

What doe you do with the iTouch volume control?

Thanks guys and I am looking forward to your responses....

John