<<<I normally record in Audacity, then export as a WAV file to WavePad for further editing. >>>
That step you handle in Audacity, Preferences, Quality. "CD" quality is 44.1 KHz, 16 bit, stereo, sometimes abbreviated 44.1/16/2.
Video does better. Their sample rate is 48 KHz with 16 bits and stereo. You can go up (or down) from there, but those are widely accepted configurations.
PCM is Pulse Code Modulation and basically means no audio compression and no or minimal damage.
<<<actually make any difference?>>>
If you reduce the sample rate or the bits or go to mono, the quality of the performance will suffer. Going from Stereo to Mono can have other problems as well.
Most people want very much smaller music files or to push work off to their iPod. That involves producing digitally compressed work and that has its own shortcomings. MP3, AAC, etc. work by damaging the performance in ways you can't hear--hopefully. Those compression tools are non-recoverable. Once you produce a highly compressed work that sounds a little gargly, you're dead unless you kept the original capture.
Koz
