Actually you'll get less audio loss recording them like this and saving to a non-lossy format (like AIFF) than you would converting them to another lossy format (i.e. mp3).If you don't mind a small amount of quality loss (hey, they're already RM files, how much worse could it get?), you could use something like Audio Hijack to re-record them into a useful format.
Of course, that's going to cost you $32. For that kind of money, it might be worth just buying them from the iTunes Store. At least then you'll be able to use them on other devices.
We gave you a solution:I will keep looking for a solution.
iirc the demo version of audio Hijack lets you do up t a ten minute "hijack" without hinderance. After that, it starts to impose white noise on the file. If the RM music is less than 10 minutes EACH, the OP could hijack a song, then quit/restart Hijack and RealPlayer for each song. Kludgy but workable and free.you could use something like Audio Hijack to re-record them into a useful format... Of course, that's going to cost you $32