AAC vs Ogg Vorbis
The Advanced Audio Codec (aka AAC) and Ogg Vorbis are both lossy compression formats for digital audio.
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[edit] Licensing
AAC is part of the MPEG-4 standard, and even though it is part of an ISO "standard" there are patent issues to hinder its free use. Ogg Vorbis is open source, and patent free, making it easy for anyone to use.
[edit] Sound quality
Sound quality is a very subjective topic. For most people, Ogg Vorbis sounds better at bitrates around 100 kbps as it does not cut off the trebles as harsh as AAC. From 128 up to 160 both will probably sound pretty good. Many people will not be able to tell the difference between a 192 kbps AAC/Vorbis and a CD.
[edit] Compability
Almost all media players support both AAC and Ogg Vorbis (except for iTunes and WMP which do not support Vorbis out-of-the-box). If you need high compability you should still use MP3.
