Thought this was an interesting as well as fun read.-
http://www.maximumpc.com/article/do_higher_mp3_bit_rates_pay_offHow We Tested
Each lucky participant was asked to bring in a CD with a track that he or she has listened to for years and knows so intimately that a single missing hi-hat tap would stand out like a sudden blast from a tuba. We ripped each track using iTunes at three quality levels: 160Kb/s, 320Kb/s, and uncompressed WAV. The compressed files were ripped using variable bit rate (VBR) encoding, meaning that a 160Kb/s VBR track allows the bit rate to rise and fall depending on the complexity of the music while maintaining the selected bit rate as the minimum bit rate for the track.
In a quiet room with mood lighting and kitschy Scandinavian furnishings, the participants put on a pair of Sennheiser HD 580 headphones that were attached to our test PC’s Creative X-Fi soundcard. The participants listened to not only the three versions of their own track, but also the three tracks from each of the other participants, for a total of 12 tracks in all. Each participant was allowed to listen to each track as long as he or she could stand it, and was allowed to repeat portions of the track and do A/B testing with the other tracks.
They had four judges; their final scores were-
The Pluralist 6/12 correct
The Hipster 3/12 correct
The Curmudgeon 5/12 correct
The Audiophile 5/12 correct