Well as much as people are going to hate me for this: If you can live with an iPod, don't worry as long as you're using Mp3's of 192kbps and up.
Below that you might start hear the compression.
Why not try it out? Just see how low you can go before you get bothered by it and don't go any lower. I don't mind making a sample for you of the same song in some different bitrates.
I know most people can live with 128kbps and up.
It does depend on the encoder and on the music a bit.
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