iPod - what compression do you use?

[crazy]

I've been using MP3 - 128 mode.

Just found out that this results in very poor audio quality, which means I need to re-convert all my CDs :(

Any suggestions for the perfect balance between great quality and space saving?

I heard that the AAC - 160 mode is really good.

[ledhed]

I use AAC 192. I used to use apple lossless but, the iPod really didn't show any differences and the size difference is definantly better for the AAC