.WAV or .MP3???

[abitmessie]

Both MP3 and WAV's require some decoding
I don't believe that either type of file will increase or decrease your time code performance. System Performance maybe.

Timecode is used as a posiston marker in a way
for example the start of the record is the start of the song middle is the middle and so on.
if you are having issues with playback then please post a config report

[DJ AJ Slye]

In my opinion wav files are always better sound quality wise, however if hard drive space is a concern then mp3/ogg/wma or aac files would be better, but neither are better than the other when it comes to timecode performance.

Personaly, I use mp3's at 320 constant for my perfomances as my laptop only has 320 gb drive, but I have everything backed up to a TB external harddrive in wav format for archival. You should use whatever you feel comfortable with, I have workied in clubs that has all of thier music at 120kps mp3's and to tell you the truth none of thier customers could realy tell, as long as the quality is constant across all your tracks and as long as your the only DJ that night no one will be able to tell what quality files your using.