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1) I'd like to rip cd's to a folder on my harddrive, instead of the default iTunes library... how can I do this?

2) Also, I found some details online about quality in ripping;
A 3 minute song at 128kbps will use approx 3MB. (poor quality)
A 3 minute song at 320 kbps will use approx 7MB. (excellent quality)
A 3 minute song at Apple Lossless will use approx 15MB. (perfect quality)

* Is it true that Apple Lossless gives me the best quality?
Also, it needs to be compatible with different output formats, so that it can play on my iPhone and can also be easily burn to a cd (recognised by most cd players).
Is Apple Lossless able to do all this, or would mp3 be more compatible?