i'd suggest dbpoweramp as well, or if foobar is your music player, use that.
as far as formats vs. quality... a lot of people would be hard pressed to hear the difference between 320 MP3 and FLAC (WAV), and even between 192, 256, and 320. for MP3s, though, I stand by V0. 320 is just a waste of space. even silence/dead air is streamed at 320. with V0, the silence/any parts that don't need to be so high aren't. therefore saving space on your hard drive without losing any quality. for mobile devices i'd even go down to V2, given the poor quality of all the devices/ear buds, and space constraints.