QUOTE
Personally I feel that transcoding to about the same bitrate is the least desirable option. One can justify going to a significantly higher bitrate to minimize the loss of quality when one absolutely has to go to a different format, or to a significantly lower bitrate when one absolutely has to go smaller and there is going to be a loss of quality anyway. But going to a similar bitrate loses quality with no reduction in size, which seems like a complete waste.
Just my two cents.
I don't know if transcoding to the same or even higher bitrate would prevent more quality loss. This should be tested first.
My opinion is transcoding to bigger filesizes is not worth the space, because you'll have less quality anyway.
QUOTE
Hi,
Thanks for the info, I mainly listen to classical and jazz music
(with bundle earphone!). I tried a few tracks with iTunes AAC vbr
192k and 128k, but I'm not sure if I can tell the difference, I
may need more tests. But what if the size is not a concern but
keeping quality is? Then, 192k to 192k will be a safe way or
it may not make sense as I'll loose quality so lower than
192k, such as 160k vbr (or -q 0.5 in Nero) may make more sense?
csp
If the file size doesn't matter but quality in transcoding for your iPod / iTunes:
Just try step-by-step settings (start with -q0.31) and check out if you notice quality loss. If so, try higher settings. (A report from you would be nice if higher bitrate than the source file brings less quality loss

)
VBR will be indeed more efficient than "CBR". Just go with -q XX (Nero).