Yup... use 320kbs on MP3's when you convert from waves. Converting to 128kbs can sound bad, so go as high as you can. Some free web sites have file size limits so on longer songs you may need to drop to 256kbs to make them fit. Others will reduce the file down. Soundclick I think is one that does that. STILL.... upload the highest KBS that will allow the song to fit their file size limits. Or.... use Box.com where there are no size limits and you can even load waves ... for internet listening.
You have to go back to the mix though. It sounds like the mix may not be properly balanced and eq'd and while it sounds good in the studio, when it gets played back on something else, it sounds not quite so good. We all tend to try to make things sound good in our studios..... ear candy.... but the trick is to learn to mix so that the song translates well across many other diverse speaker systems, including car stereo, home stereo, computer speakers, and the MP3 devices with ear buds.
One thing you can do is post your work in the songs forum. I haven't been in there much recently so I don't know if you've been doing this already. By doing this, other folks can listen and they will be on cans or some other sort of speaker system. All the deficiencies will show up in that manner. They can then give you the feedback you need so that you can learn the things you need to pay attention to in your studio setup.
Also, it may be that the song is coming straight out of the DAW... essentially raw tracks mixed with some eq and verb..... but not polished and "mastered" to get the most out of the song. You didn't say anything about the process you use to get to where you are, and that all matters. The lousy sound in a different player/speaker system is simply the end result of not finishing the process properly.
Using the songs forum in this manner, is a great way to get good ears on your music and production chops and find out what you're doing right, and what you're doing that needs work.