I had a friend who had two high end racing bicycles that were exactly the same in every way except that one was red and the other white. He trained on the white bike but raced on the red. He was convinced that the red bike was faster. I never argued with him because he could (and did) kick my b**t on a regular basis (except of course when I let the air out of his tires before a training race,

. The point is that there are a ton of threads out there on which format is better and none of them make much, if any sense, but if the file format makes a difference to you, then that's cool and I'm not going to argue with you.
You'll be able to hear the difference in a decent system between a low resolution file and a higher one. How "high" you need to go is open to lots of disagreement. I suspect that it is impossible to hear that difference once you hit 320 kbps or the 256 kbps variable bit rate used by Amazon. Some claim that they can hear the difference between a high quality MP3 and a lossless format; perhaps they're right or perhaps they just like red bikes better than white.
Personally, I rip all my music to a lossless format (pick your poison, flac or alac). I may not be able to hear the difference between a lossless format and a 320 kbps MP3 but why not have a bit perfect copy of your music file on your computer? Space is cheap. Plus you might want to turn your lossless files into a MP3 file one day because you are using them on a device like an iPod. You can go from lossless to MP3 but not vice-versa (you can't add back in what has been taken out).