DoubleFunk:
You are correct, "K" is the abbreviation of Kilo, which is a unit of measure equal to one thousand, thus 500K= 500,000 ohms.
However, a 250K volume pot gives you
less volume than a 500K. It probably wouldn't be a good idea to go with the 250K pot in this case for that reason.
These two threads are relevant to why:
http://www.talkbass.com/forum/showthread.php?t=494664
http://www.talkbass.com/forum/showthread.php?t=520484
The Aguilar preamps call for 250K/500K pots before their input, but 25K volume controls would usually be used after the preamp, as the preamp outputs a lower impedance signal than the pickups.
It can sometimes be more desirable to use a 25K volume after the preamp because you don't have as much of the treble loss associated with rolling down the volume on a 250K/500K pot ran before the preamp.
Some preamps are designed to work better with 250K/500K pots before the input, and others are designed to work better with 25K pots after the output.
Using 25K volumes does interfere with your ability to still use a volume control in passive mode if you have an active/passive switch, and it makes it impossible to have two volume controls if you prefer them to blends/pickup selectors.
If you are concerned about the volume with a 500K, 250K is certainly not the direction to go to fix that problem.