What Alan says is correct...Once its .MP3 the .WAV quality is gone.WAV is better of course.
But if MP3 its always better to Have your MP3 Files 192kbps.
I'm a New guy to Camcorders but
am not new to Music production,So if you guys want to do some Music Editing with great capabilities and don't want to spend money then download Reaper Music editing software..
REAPER its great for Mixing songs,making for own tracks etc etc..
If money isn't an issue then go for Ableton Live 6
Home which is what i use....Its amazing. There are also loads of Tutorials for new users
Tutorials
**EDIT** oh yeah buy the way..If you don't have a soundcard that has ASIO drivers (Which means it can Play multiple sound files at the same time effortless) then download the Asio for all Drivers for your soundcard
ASIO4ALL - Universal ASIO Driver