<< What I'd like to see is a double blind study done with self-proclaimed audiophiles where the same track is played in MP3 format and CD format. >>
Sound and Vision Magazine did just such a study about 1.5 years ago, using the Fraunhofer encoder, and found that 128kbps mp3's were easily identified by every listener on the panel. 256kbps were consistently identified by only a few listeners and only on a few specific test tracks.
However, encoders like LAME have improved quite a bit in the last year, but I would still say that using mp3 for critical listening is not quite appropriate.
I can identify a 128kbps mp3 probably 85% of the time using my PC's Altec ACS295 speakers. Played through my stereo, I can always pick out a 128kbps file. EVERY time. Using LAME-encoded 256kbps files I can never tell the difference on my PC speakers, and on my stereo maybe 10% of the time.
<< Technically i from what i calculated from the book CD quality is 172kpbs >>
What calculations from what book? A CD data stream is 1.4+ Mbps, BTW.