I think I used 1/4w for mine, but bumping to 1/2w is not a bad idea. As for sound quality, you wouldn't exactly want to run this circuit for main speaker signal, but for subs it's no big deal. You could try carbon or metal film resistors. Might be low enough frequency to not notice a difference though. As to values for R1 & R2, it's all about the ratio, not necessarily the end values. I chose 1K just for ease of math to dial things in. All in all, it's a cheap deal to DIY and try for a bit.