I have a though to this topic.
Wav is the same format that used on CD-s (only CD-s use it with 4 times more data redundancy, to make tha data restorable if the CD get damaged).
Wav is a so simple format, that It does not require complex drivers to encode and record.
Not the same at .mp3-s.
Mp3 coding is a bit resource using, and needs on-the-fly conversion of the data, (witch does filtering non needed frequencies, sampling and compressing the sound), witch means more than 100ms between the sound playing and writing on the HDD, and it is also has a lot of settings, that make it difficult to set for proper operation.
Conversion is easyer than you think.
-Open winamp
-Put the recorded file to the playlist
- Right click on the record
- then choose "Send to" and then "format converter"
- Choose mp3 on the drop-down list
- Set up quality, etc. (and check "Use old file name and path")
- Click ok
THERE U GO

In pictures (click on the pictures to see the whole)
Winamp + playlist

How to find format converter:

Format Converter window
