As long as I am going MP3 (iPod or whatever), I always use VBRs. I find that it gives me the best sound quality/file size balance. There's no compelling reason to make CBRs unless you have old equipment that chokes on VBRs. VBRs are generally smaller but better sounding.
I'd recommend you use
EAC (Exact Audio Copy which is the best and it's free) to rip to WAV and then archive those files as FLAC or SHN (lossless compression). That's your reference copy and it's as perfect as possible. Then use LAME to generate MP3s from the WAVs. I use "--preset standard" which is the same as -V2 (about 190kbps).
For certain types of music you can always increase to V1, or decrease to V3 if the music demands it. Regardless, you can always toss the MP3 files and go back to your reference WAVs to re-encode with the next flavor of the day.
Here's a good page on the topic if you want to read more.
I'd probably switch to Ogg Vorbis, but it won't work on some of my hardware.
-pmc