claf_43 - Xristo was refering to mp3s that were ripped off vinyl that may have been mastered differently to the cd version, therefore sound better even after any quality loss (however minmal) from converting to mp3..
Anyway, this topic was discussed recently in this thread:
http://www.caraudioaustralia.com/forums/vi...pic.php?t=31440
Now the idea behind mp3 (and several other lossy compression formats) is to use psychoacoustic methods to throw information that is masked by other sounds, which you will not hear, resulting in improved compression. This is used with other compression methods like joint stereo etc.
In ideal circumstances, it is quite possible to reduce the bitrate to a fraction of the original, while still maintaing transparent quality (ie you will not be able to ABX the difference between the original and a directly encode version)
Now mp3 does have a series of limitations that can affect the quality. However, with a well tuned codec and suitable bitrate for the recording, almost transparent quality can be the result. Naturally, the more information the recording contains, the higher the required bitrate, so naturally noisy distorted recordings will require higher bitrates than quiet classical music. Naturally a variable bitrate method is preferred, to maintain constant quality, rather than constant bitrate.
As stated in the previous thread, Exact audio copy in combination with Lame, using either --preset standard (or --preset extreme, or --preset insane depending on you're preference and possible listening tests) is recommended if you prefer quality.
Before automatically assuming that mp3s are of poor quality, I strongly recommend doing ABX listening tests. Sure there may be exceptions, but the majority of recordings can be encoded virtually transparantly. In most cases, you probably wouldn't actually notice the difference, unless you were doing an direct ABX comparison..
But you don't have to limit yourself to MP3, as there are other formats that may be technically superior available, such as AAC, MPC, OGG Vorbis etc. Not to mention lossless formats that can still achieve decent reductions from the original. Remember that to get manufacturer support, there needs to be demand. So the use of alternative formats, especially lossless formats is encouraged..