What format/kbit per second should I use?

I'm in the process of converting all of the music on my iPod to a format that will work on my PS3. From what I can tell, .m4a does not work on the PS3. So I'm converting them to MP3s using "Easy CD-DA Extractor," and was wondering what kbps level you would suggest for balancing high quality with reasonable file size.

I do have a 120 gb HDD in my PS3, but don't want to fill it up with all of my music. Based on the transfers I've done already, it looks like if I use 320 kbps to go from m4a to mp3, the size of the file is about 2.5x larger. I have about 8gb (.m4a format) of music I'd like to transfer.

Any help would be appreciated!

Well, I believe I can actually transfer songs directly from my iPod, but when I have done so it doesn't carry any of the song/artist info with it. I'm not interested in renaming all of the songs.

When I tried transfering m4a files from my PC to PS3 using Red Kawa, it wouldn't let me.

Thanks for the kbps recommendation!