I keep bouncing around. At first I just used the iTunes default, the bumped it up to 160 aac. Since I started using eMusic for legal downloads I started ripping at 192 VBR mp3s. They sound much better to me than 160 aac's.
Though on my iPod the sound quality doesn't much matter because I crank it to 11 to drown out the idiots on the subway. The low bitrate does kind of bug me when I'm playing my iPod through my stereo. But I have little interest in re-ripping everything.
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