A more enduring solution would be to rerip (with EAC of course) those CDs of yours to a lossless format of choice. EAC might even be able to save some of those damaged disks. I'd advise you to have EAC do the latter overnight, though, since EACing a badly scratched CD may take a couple of hours

A 200 GB HDD (costing 100 EUR/USD nowadays) will store some 600 albums in impeccable quality, allowing you to batch-reencode to any lossy format you like.
Just transcoding is not quite a long-term solution, I hope you realize that. Sure, going from 200 kbps -aps to 130 kbps -V5, as has been suggested, will be saving you 1/3 of your HDD space, but the quality will definitely suffer. Your 'new' 130 kbps MP3s just won't sound as good as they would if you'd have encoded them right from CD or lossless to -V5. What if your collection grows by another 1/3 and you run out of space on your portable once again? What if you decide to buy that shiny new 120 GB AAC playing iPod-or-the-like within a year or so, and if AAC will by then have proved to outperform poor old MP3, listening test after listening test? I hope you won't be having to reencode your music again by then.
So in short, my long-term advice would be to get a big HDD, rerip all of your CDs to lossless, totally annulling the need to ever rerip or transcode your music collection again. That way, you can go straight from original quality to the lossy flavour of the year.
My direct answer to your question would be to go for
-V5 -h, since that's the highest quality LAME setting for 130 to 135 kbps MP3s. But try to look up the lowpass freq of your Sony earphones, and encode your MP3s accordingly. So, if your Sony phones have a lowpass of e.g. 18 kHz, I'd encode to
-V5 -h --lowpass 16. I'd lowpass LAME to at least 2 kHz below your earphones' lowpass, since headphone manufacturers tend to exaggerate their products' lowpass specs anyway (especially in the low-end product range) and depending on how good your hearing is, you're unlikely to be able to hear such high freqs, especially with earphones (as opposed to closed studio headphones) and in a noisy environment. Don't forget the
-h in your command-line, since that one stands for '
high quality'.
-q1 or
-q0 should provide even better quality than
-h (which is =
-q2), but my personal experiences with
-q1 and
-q0 are not too good. Both are vvveeerrryyy ssslllooowww at encoding and, what's more, have actually returned lower bitrates than
-h/
-q2 (only 1 to 3 kbps though), which made me sceptical about their higher quality claims.
Of course, it could very well be that
-V5 already applies some lowpass of 16 kHz or anywhere near that by default. If so, I'm sure someone will confirm, and in which case, I'd recommend going even lower, like 15 kHz.
Anyhow: good luck!
Edit: Just gave it a shot at a couple of my own FLACs. Seems like -V5 defaults a lowpass of something like 16.8 kHz. So I forced the lowpass to 16 kHz, and that seemed to effectively bring down the average bitrate by a couple of kbps. So it looks like your target bitrate is in sight with -V5 -h --lowpass 16. -q1
in stead of -h
also seemed OK speedwise, since encoding is relatively speedy @ -V5
as compared to -aps
. Depends on how much patience you have
It still produced files about 0.5 kbps smaller than with theoretically lower quality -h
though. Oh, and don't forget about --noreplaygain
to prevent LAME from applying gain to each track individually in stead of to the album as a whole.
Edit 2: Oh, and in order to get the full potential from the -V5
setting, I'd also recommend LAME v3.96.1 in stead of 3.90.3 or the like.