When I tried using MAX to convert Apple Lossless to AAC and then stream those files from ITunes I ran into that "atom" problem that requires AtomicParsley to fix. (atomicparsley did work for me on OSX but the W option - overwrite - didn't actually overwrite the files)
So I tried converting to MP3s (with MAX) instead and streaming those from ITunes. They do play but it takes a long time (10 or 20 seconds, somtimes longer) to start playing each track (I'm playing them in Windows Media Player).
When I converted the same tracks in ITunes from Apple Lossless to MP3 and streamed them there was no such problem (buffering only lasts for 3 - 5 seconds per track).
So I wonder - if you're going to be streaming from ITunes (and my ITunes is on OSX 10.4) are you just better off letting ITunes do the conversions ?
I like the functionality of MAX but there seem to be too many ITunes streaming issues.