From what I hear, AAC is better than MP3 at comparable bit rates, so if you've made the decision to "spend" such and such a bit rate for your music, I think using AAC would give better quality. For example, if you planning on trying 320 kbit LAME encoded MP3s, try 320 bit AACs, or you may even be happy with the AAC quality at a slightly lower bitrate, maybe 256 or something. I haven't done any A/B tests or anything yet, but I'm pretty damned happy even with the 128 bit AACs that I've bought from the Apple Store.
I know hard drive space usually isn't an issue (although I'm about to fill up my 120 gig hard drive
), but if you're using a portable MP3 player, I think you might want to give it at least some consideration. The increased quantity of songs that you get from using say 256 or even 192 kbit if it's acceptable to you, instead of 320 kbit could mean a lot.
I don't think there's any difference between aiff and wav files, they're both just the original digital information, I don't think there's any way for them to sound any different unless the software is doing something weird to one or the other when playing them back.
Since you're using iTunes, I'd not really worry about Ogg, whatever benefits it supposedly has over MP3, I think are minimal over AAC, and since Apple has committed ot fully supporting MP3 and AAC, and will probalby never support Org, why deal with the hassle.
On a somewhat unrelated note, has anyone tried Shorten or Flac or any of the handful of lossless compression formats? I'd like to try some of them, but I'd hate to give up the ease of iTunes, I really do love it.