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I use CDex to rip music from my CDs. I encode at 192kbps. The new rage is VBR, though. 320kbps is good and all, but worth it only if you're the audiophile that the guy at the record store is afraid of. I personally notice a difference in 128k vs 192k, but I live around too much background noise to really tell the difference in higher bitrates. Also consider that if you fall in love with 320kbps, you're not gonna be able to fit many albums on your iPod.
CDex doesn't go so far as to archive a CD cover image along with the tracks, but it is quick, no-nonsense, and easy (once you have all the settings the way you want). All I really need is accurate ID3 tags and a good directory structure.
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