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I usually do 160 for the computer, and 96 for the Treo.
As shopharim says, it's a matter of preference, but I'd go even further to say that equipment plays a big part of it. If you're using iTunes and run of the mill PC speakers, 128 would probably be fine. If you're an audiophile and using high end equipment, you'd probably want a lossless format.
Too many variables. You have to find your own balance between size and quality.
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