I am currently in the process of copying all of my music from CD to my hard drive for use in iTunes. I was wondering whether I should go with ACC/320 KBPS/VBR or Apple Lossless. I was also wondering whether I should go with error correction. File size does not matter to me; I am going for the best possible quality.
Apple Lossless = CD Quality. It's an exact 1:1 copy of all the 1's and 0's on the physical disc.
AAC or MP3 is lossy compression. It discards many of the 1's and 0's from the original disc to create a compressed audio format that takes less disk space.
Disk space these days costs next to nothing, and I paid for all the bits on the CD, I want to hear all of them.
That said, I have a home stereo that costs more than most people's cars (over $20k) and even on this system, I cannot tell the difference between AAC 320 and Lossless. I can hear AAC 256 and Lossless, which is very very tiny difference to my ears, but I cannot distinguish 320.
If you are listening on a typical sub-$1000 consumer stereo system, you will never hear any difference at all.
But one benefit you do have with lossless, is that you can convert it later on into any other format - WAV, MP3, AAC or some future standard not yet invented. If you store using lossy compression like MP3 or AAC, each subsequent time you convert to a new format, the quality goes down and down.
But quite frankly I do most of my listening to the actual CD disc while I'm at home. Audio CD is probably the very last consumer format that is free and open, and isn't crippled by DRM, encryption, and other rights restrictions garbage.