I would personally recommend encoding using the latest version of the Lame encoder (including with CDex) at 192kbp (or higher), with the High quality setting; this preserves high frequencies such as hi-hat cymbals quite nicely...
My custom Winamp skin will be taking a break, since I don't currently use it, and I've lost the files...
This section is becoming hugely out of date... will endeavour to tidy when I can.