256kbit/s CBR should be pretty good quality. Some encoders have high frequency cut offs to remove some of the higher frequencies that some people can't even hear anyway. These are above about 16kHz.

Perhaps there is something not quite right in your install? Try just ripping a .wav file and putting it on your empeg. Then you'll remove the encoder factor completely.
_________________________
Christian
#40104192 120Gb (no longer in my E36 M3, won't fit the E46 M3)