Replying to Itunes- WTF?

Ok, so I just downloaded itunes because I'm going to buy an iPod. I've been using Windows Media Player for years, and it's time to move on.

So I download itunes and some of my music is already in the library. Ok, so now I just need to add the rest manually.

Well, I think I finally have everything in there, but then I notice something. I HAVE 81 gigs of music and only 3300 songs! WTF?

This is disturbing, considering my laptop's harddrive is only 80gb. It really doesn't make sense...on WMP it said I had around 30 gigs. I know it has to transfer all the WMA formatted songs into AAC (which is taking forever), and someone told me takes up more space, but seriously-- does this make any sense? I was counting on everything fitting onto a 30 gig iPod. Am I missing something?