I'm in the process of doing the same thing... granted, my "collection" of CD's is about half this size (I also have about 1,500 albums that I will eventually be ripping as well). Because memory is so cheap and getting cheaper (1TB hard disks for under $200!), I'm ripping everything in WAV. Why? Because a) you get the best uncompressed sound, b) any decent portable player or jukebox I would consider will play them, and c) if I choose to, I then still have the capability to rip the source file to whatever compressed format I choose to use for the application.
That's not to say I don't use compressed music; I do, especially for use on my portable and in my car (really hard to tell the difference there) and I rip it consistently to MP3 256K... that's a good compromise for me. I also use Real Rhapsody for listening at home and on the portable probably 75% of the time, and most of that is at 160K WMA. Quite frankly, it's amazing how good it sounds most of the time, even sitting in my sweet spot in front of my Klipsch "mini Wall of Sound." But, you can definely tell in an A/B comparison that it is compressed music you're listening to (Who's Next is a great album to test with... the compression is obvious there... Townsend was way ahead of his time with "Won't Get Fooled Again").
So, the quality of your rip is really a function of how you plan to use the tunage. If you're a sterophile, who sits and listens to music intensely at a high volume (good classical or rock), the less compression the better. If you listen primarily in your auto or just have the music "on" while you're doing other things, even if it's pretty loud, than 192K MP3 will be fine (I definitely would not go as low as 128K, there is a big loss of fidelity at that rate)
Let us know what you pick, I'll be curious.