Most of my collection is flac or mp3 v0, my portable player is 512mb so I'm trying to get the best bang for my buck and maybe squeeze 10-12 albums on it. Whats my best bet convert to wma or convert down to maybe v7 mp3? (it wont play ogg files only wma/mp3)

I already know lossy to lossy is a no no so dont waste your time telling me that b/c I dont care its a portable player and I'm listening with cheap earbuds while I work out so sound quality isnt on the top of my list.

Before i bought a portable supporting Vorbis i sticked to both LAME -V 6 and to WMA 9 Q50 as a compromise between file size and quality. Since quality isn't your main target the -V 7 you suggested might indeed be a good option. I'd recommend you to simply make a subjective comparison between LAME -V 7 and WMA 9 Q50 - if I'm not totally wrong they generate comparable file sizes (not quite sure about -V 7 since i never used it myself, Q50s are commonly around 80 - 120 kbit/s, dependent on the music's complexity), therefore the one that sounds better to your ears should become your codec of choice. I wouldn't dare to tell you which one of both was the "best bet" you asked for, simply because your ears aren't mine. And subjective codec recommendations are TOS #8 violations anyway.

Edit: Grammar, grammar and an addendum.