FairGame will convert the songs you bought on the iTunes Store to an unprotected format (using iTunes default encoder) and keep all the original metadata, lyrics and artwork.
It got so far as creating a wav file in iMovie HD. Back in iTunes it craps out.
So I went back to iMovie HD file. From there I exported it under Quicktime using compress movie for: Expert Settings. From there you can choose the file type and compression. A bit hacked, but it worked.