1) You will want to rip all your CD's in lossless format and store them in DVD-/+R. With proper tags, embed covers and replaygain-album.
2) You will store these DVD's safely, and when the new media catches, Blu-Ray and HD-DVD you will re-copy them to a less amount of faster, better and modern optical discs.
3) You realize that there are many lossy formats out there and better ones than MP3, but if you browse any shopping catalogue you also realize that the 99.9% of the devices in there support only MP3 format. So you realize that going astray MP3 will lock you in certain listening conditions.
4) Since you don't have any lossless hardware player, you will do the 5th item.
5) So, then, you will rip your "special" FLACS/WV/whatever lossless files, now properly tagged, with covers and so on into the highest MP3 quality available that is 320 kbps. Yes, it is overkill, it is exaggerated - but I prefer to go for this than to feed in my head the eternal debate V5 x V2 x V0. - Disc space is not a concern anymore, majority of portables now are starting with 4GB storage, so no fear anymore of 320 kbps MP3. You still can get 40 albums on a DVD-R, against 17 FLAC albums on the same DVD-R.
6) You will burn these MP3 files to CD-R media, so that they play anywhere.
7) You can complete your transition to lossless when storage becomes ridiculously huge enough for lossless, and when a couple of popular hardware players stick with a lossless format to go with.
(And that should give you some good sleep nights... after all the suffering.)
Update: (Recommended Software)
CD Ripping to FLAC -> EAC latest version with AccurateRip DLL enabled
Cover Art inside the FLAC file -> MP3Tag 2.39
Masstag tuning and Replaygain scanning - Foobar2000
Coversion to MP3 - Foobar2000
MP3 Encoder - LAME 3.97 final
Recommended settings for FLAC: -5
Recommended settings for LAME: -b 320
