Here is what I do.

I decided to go with MP3 over AAC years ago because MP3 was more of a standard.

I use MP3 on my iPod and any mixes I make for the car- sometimes its upsampled to red book or it goes on CD or even DVD-R for the car if the car stereo can handle it. I honestly dont hear much difference with 192kps MP3 in these environments (car, gym)- though I am sure its there.

I rip full disk images for my media server (kscape)- so thats lossless. I also make a backup file of all the cds to AIFF on an old computer over my network.

Listening around the house or on the M system its via the K scape so its lossless.

So when I get a new CD- it gets ripped 3x:

1- 192kps MP3 for iPod and ease of making mixes for the car

2- AIFF for backup

3- Kscape which I believe makes a disk image.

Best regards,
Jerry
Main System: 861v6, DSP8000s in corners, DSP7000s Center and Sides, 1-9 humans.