I just won an iPod Shuffle at work

Last week was customer service appreciation week at work (I provide level 2 tech support and sme roles in a call center) and I won an iPod Shuffle (2GB). This was one of the first Apple products that I actually wanted day one of their announcement that I could actually afford. I never bought one because I'm cheap but now that I have it... Sweet!

2GB's isn't a lot of space but I'm thinking that it will be enough for exercising at home and at the gym as well as being good for my walk to and from bus stops, grocery shopping, etc. It'll at least let me conserve my phone's battery when I'm traveling since I use it more like an mp3 player than a phone. Well, I may trade it for a Nook that someone else won, (I have a ton of ebooks) I'm just waiting for their response to an email (they'll probably say no).

Getting to the point:

Does anyone here have an iPod Shuffle or have they used one? I'm interested in knowing what the minimum bit rate for good music quality can be with this device and the default ear phones (or other cheap ones). I normally rip my music to a lossless format but place it on my phone at 192 Kbps. I can hear the difference between 128 and 192 on my phone but I know that it may not be as noticeable of a difference on certain pieces of hardware. Should I aim higher with the Shuffle or lower? Let me know, I'd like your opinions please.