As pomegranate quite rightly mentions, MP3 has it's compatibilty advantages.
However, I found MP3 not good enough for me until I reached 256kpbs, otherwise it just sounds compressed and nothing like the CD (although on cheap headphones, standard car stereos or the usual domestic hi-fi MP3 is fine and most can't tell the difference).
I chose Ogg for 3 reasons
1. Highest quality for a popular compressed format.
2. File size is a lot smaller than that of MP3
3. I don't have to share with my sad iPod mates, cos they can't play Ogg
I found -Q6 the best overall setting for file size and sound, It is also the starting point of full-bandwidth encoding.
For those happy with MP3 Lame 256 kbps, they'll find -Q6 virtually equal (apart from Ogg's file sizes are a LOT smaller).
I use -Q6 for general ripping, but although it's VERY hard to hear the difference between -Q6 and the CD, I use -Q7 for my favourite music anyway!
I was in the same position as you, poised ready to rip my entire CD collection and knew I had to make the right choice before spending weeks doing it!
I did all the tests, read articles and Ogg seemed to be perfect in every way, works well with WinAmp (my choice of media player for the PC) and playlists too.
I'm so glad I didn't use MP3 now!