> Import Using: MP3 Encoder > Setting: Custom. To change the encoding settings, iTunes> Preferences > General Tab> Import Settings. The default settings in iTunes are to encode AAC files, which are supported by Serato software, however we recommend MP3 encoding. There are 3 main ways of adding music to an iTunes library purchased downloads from the iTunes Music Store, ripping CDs directly into iTunes, and importing files that are already on your hard drive into your library. Getting your music into iTunes and setting up encoding
To download iTunes go to the iTunes download page for some info about setting up iTunes check out: iTunes Support