Apple seriously needs to fix this, because I cannot stand having compilations on my ipod touch and then seeing the artists name. Pisses me the fudge off.
Music players get all of their info from the tags, so whatever you write is what it reads. Find something to edit them with, iTunes will do but it's not the best... I haven't been able to find any great tagging programs on Mac. For compilations I usually set the artist name to "Various Artists" and then include the actual artists name in the track name itself. That way they're all listed under the same name but I can see who did each track.
I tag compilations the same way Midian iTunes works fine for tagging - although before I got my iPod touch I used mp3tag - http://www.mp3tag.de/en/ - and it is still my favourite program for this, but it is only on my PC at the moment.
Just looked at the screenshots for Max... I can't see many options for batches, if any. This is what I use on PC: http://tipoftheday.files.wordpress.com/2006/10/tagrename-main.jpg
