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I use mp3 192kbps...there are of course many many pros and cons of different formats and sub-formats...but for me the massive ubiquity of mp3 is the best argument, it means I can share music across the network in my shared house without people having to install extra programs, and play music on ANY digital music device (except Sony portables, I guess?)
Seeing as I only play digital music through my iHP and fairly basic Creative computer speakers I'm not sure the audio quality is ever going to be *all that*, no matter what specification I use, beyond a certain point.
However if you have any serious plans to play your files through a mp3-enabled hi-fi or using decent headphones with a quality soundcard in your computer, you might want to use a higher bitrate than you would with a portable
Personally my ideal solution (with a infinite budget) would be two sets of ripped music - 192k mp3 for portable, and EAC or WAV-ripped CDs on a non-portable HD hifi player...niiiice...
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