Are you an audiophile?

OK, I have a few questions for audiophiles.
1st - Let's say you got a song from the internet, or downloading or whatever, but definitely NOT from ripping CD. You don't like the sound quality of it because it's 128 (or lower) and is CBR. What would you do? I'm asking in the case that you really love the song and do not want to toss it away. My question is you would not convert it to VBR or even lossless or FLAC, would you? WHat I'm guessing is since its quality is "not good", you cannot convert it to a higher standard to make it "good", right? Just like you cannot burn a 128 mp3 to CD and make it sounds like a real CD, isn't it? What would you do in case you're a hardcore audiophile and you just want everything high birate?
2nd - Putting hardware aside, will sound effect plug-in from soundcard program or music player affect your judgement between ... say 128 and 192? With the EAX program come with the Creative Audigy deluxe that I own and winamp's equalizer, I can pimp a 96 sounds nearly as good as a 160 or around that. I can't tell the difference between 128 and 300 if I leave all my setting on.
3rd - The one above leads me to this one. Do you leave your sound effect setting the same with every song you listen to? For the home system, some people prefer real equalizer to make sound the way they like. But, will audiophiles (who have equalizer) come and change the setting as songs go? I think it must be a pain.

Sorry for the shitload of questions. I'm a audiophile wannabe so I want to hear opnions from every aspects. Though, I have an opinion about lossless or FLAC and the likes. I'm against the whole "everything lossless" thing. Let's say I have an OST CD of a video game from the previous generation. Its sound quality is already "not good" eventhough it's professionally recorded. Any PS1 OST or any portable system's games (hell, even PSP) will work my point. Some people are obsessed with ripping music from games. Those ripped music will never have good sound quality. It goes the same for the old music. Akkk... I don't wanna make all of them lossless. It's space and time killer while doesn't make the quality goes any higher.

Jam it back in, in the dark.