ok, im a complete nub to aac. what i want to know is whats the best encoder / decoder / settings. as well as what is the current/future status in the portable hardware world? (ipod etc..)

A completely free test version is PsyTEL v2.15, available from RareWares.

Its Nero "incarnation" as a MPEG-4 plugin with bugfixes, speed and sound improvements at low constant bitrates (see the thread in Validated News). Will cost some money after the trial period of one month is over.

QuickTime 6 Pro also costs $29.99 and is the consumer version of Dolby's AAC codec. Probably not as good as Nero's, but worth a try.

As for settings you should start with the default ones and/or presets, if there are any like in PsyTEL/Nero (-normal).

Concerning the hardware future please read the recent threads in both AAC boards. Apple's iPod does not play AAC/MP4 files yet, but it would be a logical step for them to implement a new DSP into their player because of the MPEG-4 support in QuickTime 6 Pro. If you're also looking for flash memory based players besides Philips CD based ones, take a look at the Wiki on http://www.audiocoding.com and click on the Yahoo link in the Hardware Players section.

notice that you could read aac/mp4 files on linux plateform via xmms plugin.

And with MPlayer build with faad2 support (mp4 only)