Comparison of Audio Formats

Format Quality File size (MB)
plain old WAV   36.1
FLAC 0 27.9
FLAC 8 27.9
FLAC 4 24.8
Ogg Vorbis 10 10.7
Ogg Vorbis 5 4
Ogg Vorbis 0 1.7
Ogg Vorbis -1 1.2
MPEG 3 insane 8.2
MPEG 3 standard 3.6
MPEG 3 medium 3.2

Personally I can't tell a difference between all of the above without listening to two very carefully. Plus, MP3 has patent issues. So I suggest that you use Ogg Vorbis with "-1" quality.

There's a great Bash script for converting wav, ogg, mp3, mpc, flac, ape or wma files into wav, ogg, mp3, mpc, flac or ape files here. I made a Konqueror service menu for this script that can be found here. Just put the audio-convert script somewhere in $PATH and audio-convert.desktop in ~/.kde/share/apps/konqueror/servicemenus or /usr/share/apps/konqueror/servicemenus and you'll be able to convert audio files by running (from Bash) audio-convert FILE or finding it in Konqueror, right clicking on it and going to Actions>Convert to another format.