Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
I use the iTunes-LAME encoder (with LAME version 3.90.3) at --alt-preset standard. Works well for me, and gives me the flexibility should I ever desire to get a non-iPod device. They should really compile an Intel version...

I've started using the iTunes-LAME MP3 encoder as well with the setting of -V 0 --vbr-new

People have been saying it's perceptually impossible to tell apart from lossless. I'm not sure how much better it is than what I've been encoding in the past (128Kbps AAC iTunes), but I figure instead of keeping a 320Kbps AAC archive library and a 128Kbps AAC iPod library, I will just use one library.

The latest version of LAME is 3.97. You can get it here. .DMG Drag the file into the package content/resources of the iTunes-LAME script.
 
I found that LAME 3.97 is really GREAT.
I encoded the same .wav from ape with Max/LAME 3.97 and AAC with iTunes
Both ~192kps VBR.

Guess what? It turns out that MP3 kicked AAC's a**. It is very obvious for one song at the beginning when I compared WAV, MP3 and AAC. AAC obviously eliminated too much drum echo. However for the rest of the song, MP3 is still slightly better!!!

I did Blind test by playing both MP3 and AAC at the same time with QuickTime and switch between these two windows and not knowing which one is which.

I am now very disappointed with AAC. Too bad I ripped basically all my CD into AAC.
 
Does anyone now what is the optimal settings I should use for ripping my cds into iTunes.

I was thinking of using AAC at 320. Is this too high or should I just use 128? I know if I use 320 the file size is much larger, but I have plenty of drive space, so that is not an issue.

I am looking for the best sound quality...:)

Best sound quality is Apple Lossless. And it is lossless, which means if you change your mind in two years and think MP3 at 128kbit suits you better, you just convert everything and you don't lose any quality compared to ripping the music again.

But really you don't want "best sound quality", you want "good enough for you". Take some song that you like and know well, import it as AAC 128KBit, 160kbit, 192kbit and so on, and play it back. I thought I could hear a difference between 160kbit AAC and 192kbit but wasn't quite sure, but I couldn't hear a difference between 192kbit and 224, so 192kbit is what I use for everything. Your ears will be different, so you have to do this test yourself.
 
I haven't tried, but does encoding in Apple Lossless keep ID3 tags and album art with the file?

My music is encoded VBR with a quality setting of MAX (V0) therefore it the next best thing to lossless but 1/5th the size. It's perceptually lossless, so I can't complain. :)
 
I haven't tried, but does encoding in Apple Lossless keep ID3 tags and album art with the file?)
I've converted alot of files from/to Apple Lossless and ID3-tags have always been preserved. (using the already mentioned Max. Aweseome for converting/ripping music)

Not sure abut the album art, but AAC and Apple lossless both use the same container (m4a), so I doubt it's much different from how AAC handles it.
 
I ripped my entire CD Collection 2 years ago at 128 AAC and now I really regret it because I really can tell the difference between that and something ripped at a higher rate.

I think the next time I redo my collection I'll look into Lossless, but with only an 80 GB HD, and about 350 CD's, that could be a problem.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.