What settings should I be using for importing?

I currently have 3 sources of music - my own CDs, iTunes, and eMusic.
I've left the settings in iTunes 7 at the default "AAC" but I just noticed there is an mp3 option in there. Which is better? What about Apple Lossless and the other options?
Interestingly, even though AAC seems to be set at 128, I've noticed that only my iTunes purchases and my personal CDs stick to this rate; the mp3s that I bring in from eMusic seem to import automatically at a VBR anywhere from 160 to 200.
Any help and advice is appreciated. I've already imported my entire personal CD collection, but I'd like to do the highest quality option for the future.
Dell E1705 laptop

Rather than re-type information, let me refer you to the following link where this issue was previously discussed.
http://discussions.apple.com/thread.jspa?threadID=655764&tstart=0

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What settings should I be using for importing?

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