[KLF] Some advice and help (OT, but needed)

Hi everyone, Finally, after about 9 months of prevaricating, I've finally decided to start drastically cutting down on my music collection, converting everything to digital files, and selling all but the barest minimum of CDs and vinyl ... So, how should I do it? I'm tempted to store them as lossless files on an Ipod and also as mp3s on DVDroms and also, possible, on a back-up external harddrive. What do people think? Any suggestions? Of course, this does mean my Kollection might, in part, being ebay-bound quite soon! John