I would recommend trying using the MP3 encoder LAME with the '--alt-preset extreme' switch. This will result in variable bit rate MP3s at about 190K. 128K fixed bit rate was no comparison.

I'm using the MP3s on an iPod with Grado 125 headphones with very good results. I played with many levels of encoding with this being my best compromise between quality and size - remember I'm using this for portable music.

For the ripping of the wave to hard drive I recommend EAC. Even if you are not cnverting to MP3 this reads the CD multiple times to ensure a near perfect bit copy. EAC has provisions to launch LAME so that you can rip and encode in one step. Directory structures based on attributes such as artist and CD can be automatically created.

It's great to be able to carry a significant number of your CDs wherever you go!

LAME: http://www.jthz.com/~lame/

Some LAME swithces: http://minnie.tuhs.org/pipermail/mp3encoder/2002-January/004369.html

EAC: http://www.exactaudiocopy.de/

Enjoy! I plan to connect my Media PC to my 568 soon to use as a jukebox. The Audigy2 is on my short list.