[MysticLlama]

For all of my music I use 320k non-VBR MP3s.

I have a set of Polk Audio Signature Series speakers that are very clear (you can hear things on them that you would never hear on a cheap set of speakers, especially in the background, etc.) The 320k is basically impossible to tell from a CD, while 128k is very very obvious.

I use all direct rips, no downloads, and have 2000+ in my collection. It just fits on a 250GB drive right now with not much free space.

If you do decide on MP3, I really can't see any reason to not use 320k with the prices of storage. You can get a 250GB Drive and a USB2.0 External enclosure for it for around $150 (cost of about 10 CDs) and store 2000ish discs on it.