I just ordered an iRiver ChromeX as well...
I recently bought my girlfriend the RioVolt SP-90, flashed it to be the iRiver iMP-100.
VBR works really well, she already has listened to a lot of them, and I haven't heard any complaints. Of course she is not exactly an "expert", but if there were any sound problems, she would have complained. The time display may be wrong, and the resume function may be not as precise as with CBR mp3 files, but... sound is perfect, trust me.
I don't ever use ID3v2 tags, just ID3v1.
I think the VBR support has been improved with iRiver's latest firmware versions. The SP-90 was running on the 2.10 version from iRiver, not from RioVolt (which actually corresponds to a lower version of iRiver's fw), from day 1, so the absence of complaints probably has to do with that.
Hopefully in a couple of weeks I'll be able to report on the iRiver ChromeX's performance.
Oh, and the "-Y" switch should not matter, or even if it's ABR, VBR, --aps, or whatever. The mp3 files that LAME will create are just as standard with any of the --alt-presets. I usually go for --alt-preset 145 (hey, I just had to choose a number that made me happy!

).
I would advice all of you to go over to the iRiver's website and upgrade your firmware ASAP, if you haven't done so already.
The batteries should run out faster with higher bitrate mp3 files because the CD has to be read more often. As you have probably noticed, it starts, reads the data into RAM, stops, plays from RAM until is about to run out of data to play, and then starts the CD again to read more data. Logically, the higher the bitrate, the shorter the timelength that fits in the RAM buffer, so that leads to more reads, more starting up the CD, more battery drain... Makes sense. And it would happen just as well with higher bitrate CBR files.
If you are concerned about this, go for WMA at 64Kbps and you will enjoy the artifact torture your ears for a longer time!

:x :x (w00t) (w00t) <---- this is to make clear I certainly DON'T mean this last sentence seriously!!!

OT: Now I want OGG!!!

(the latest increased expectations have finally convinced me to get this player, plus an unexpected cash income!

)