I set my normalizing and other settings as follows:
Check Use Normalizing.
Set Peak Level to 98
In second box, check peak level is
lower than 93.
Higher than 99
Set compression to Never.
Set MP3 via Intermediate WAV - delete the Wav
Check Use ID3v1 Tag
Check Rip all tracks before encoding
Use Internal Encoder.
I use Lame v 3.98
I set bitrate to Variable
I set the quality to VBR 1
Quality is set to Joint Stereo and High
Bitstream Flags to Original
Settings to Artist Name, Track Number & Name
All other settings to default