You can record and edit directly to WAV format with a program called CD Wave
. This will also let you save the file as an MP3 if you have installed LAME
(LAME_ENC.DLL must be in your path). It is fully functional, but a $15 registration is required for a clear conscience.
Or if you have Nero for CD Writing, it comes with a WAV editor that can decode and encode MP3s on the fly.