As far as I know there's no complete listening test results for 200-250 kbps encodings. As a consequence you can't expect a clear, unequivocal and trustable answer from any member of this board. At such high bitrate all modern encoders are expected to give transparent results for most listeners. So you can use LAME MP3, Vorbis, iTunes or Nero AAC, Musepack, and for ~250 kbps encoding DualStream or maybe WavPack lossy should be suitable as well.
But you should be aware that MP3 suffers more from a specific issue than other formats: it's pre-echo. Even at high bitrate smearing is sometimes noticeable. MP3 is also handicaped by an unefficient way to store loud high frequency content which affects some kind of music (metal is the most problematic one AFAIK but other genre are also affected). The problem is not related to quality but rather to efficiency (bitrate is higher than other formats at comparable setting).
MP3 is nevertheless highly commendable because of its wide compatibility with 99% of digital audio players, DVD players, multimedia HDD, etc... If you plan to keep lossless encodings somewhere (what I strongly suggest too) it's likely that you would enjoy a mirrored collection ready to use with most multimedia devices on the market (and of course compatible with all software players). MP3 is here unbeatable for the moment.
All other lossy formats would give you a slightly "better" quality (not always: only on specific point and only if your ears are trained/sensitive enough to detect smearing) but are less user-friendly for several aspects (mainly hardware compatibility). They're not problem-free either and there are reports of quality issue (artefact) at high bitrate with all of them. Well, they're all lossy...

N.B. I'm nearly in the same situation. My Hard Drives are full, and I'm currently thinking about deleting all the lossless stuff from them... after a complete back-up on DVD. I plan to use a lossy mirror on my computer. My choice is MP3 but I haven't decided yet for the final setting. I won't worry too much, simply because the lossless collection will rejoin my HDD in the future: with 1TB HDD coming in the 2...3 next years at decent price my lossy encodings is already doomed

N.B.2: before going for 200...250 kbps encodings, try to do some bling tests first. A lot of people are surprised to discover that ~130 kbps are transparent to their ears and that higher bitrate are not giving them any advantage.