Yes, VBR will give you better overall quality while lowering the file size. It allows for the most complex parts of the music to use up to 320kbps and the silent or simple parts to use as little as is needed to insure accurate reproduction.

Not all VBR encoders are the same (or CBR for that matter).

I use LAME 3.91 with the "--r3mix" switch (which is a macro for a popular MP3 website's recommended settings for CD quality).

My MP3's enocded with this have an average size usually between 165 and 190 kbps, and I am totally happy with the results. Prior to this I used Music Match at 192 kbps and still could hear encoding artifacts.