From what I know, iTunes does indeed imbed some personally identifiable information into the music and other media files that you download. In addition, the files usually have trouble playing on anything else other than an player authorized to play them.
I encountered this problem when I purchased music from iTunes and attempted to use it on my Rio Karma, and could not.
There is software available to "strip" DRM and your personal information from these files, but I don't think it's either encouraged or legal - but it's possible.
Now, if you burn the song to a CD and re-rip the song to another MP3 file from that, you should not have any embedded information or DRM in the new file. However, this could result in quality loss, although it's debatable whether it can be heard by most people.
Hope this helps! My solution to this problem has been to purchase from merchants that offer DRM free downloads, such as eMusic and Amazon MP3's. My experience with both has been wonderful.
Peter Redmer
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