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The new encoding codec called "MP3Pro" was released today. It takes approximately 50% less disk space than MP3's do, but are the same quality. So if you have an MP3 that is 3mb, you can re-encode it and it'll take around 1.5mb's!!!
Mp3pro is supposidly backwards compatible with older players
I don't think it's supposed to be "as good" but comparable. From what I've read, it will only sound comparable if played in a specific player (no good for mpeg4 encoding). I've also heard that it sounds absolutely horrible if not played on the special player.