Hi John C.
Ref you trying to record a MP3 file if you use the audio recorder for Technics and the USB lead the files are offered as WAV. or to save as MP3. AS you say the MP3 quality is a lot lower, when you look at it MP3 is really set up for the younger generation using those personal stereo's with headphones that are about as accurate at producing quality sound as a blunderbuss is for target shooting.

Best Regards John D.

The Panasonic Recorder is also capable of encoding the file in WMA format. It has been reported that WMA files have noticeably better quality than MP3 files, encoded at the same bitrates. Many portable Digital Audio players now support the WMA format, so it is worth considering as an alternative to MP3.

The Panasonic Recorder, by default, records MP3 files at 56 kbit, 22,050 Hz, whereas the WMA format files are recorded at 97kbit 44,100 Hz. Using the same original WAV file, the WMA file is nearly twice the size of the MP3 file, however, the WMA file is still around one tenth the size of the original WAV file.