The secrets of iTunes and iPod recording

A recording engineer from has spent some time evaluating the various options in iTunes when copying (ripping) CDs.
His conclusion was that 128kbs AAC is indistinguishable from the original CD source; especially when combined with variable bit encoding (VBR).
Use following codec: 128kbs VBR AAC
Further he emphasises to always use error correction; something that is left out by default.
To enable error correction:
He finds AAC to be a more efficient codec than MP3 as it produces better quality audio with same size files (or smaller files with same audio quality).
It is not worth it converting all old MP3s to AACs but AAC should be used for new encodings.
I myself prefer MP3 due to it’s transportability (more devices support it) and absence of digital rights management (DMR). Even if I have to create larger files to achieve good audio quality (192kbs VBR).