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First of all there's a difference between audio editing software (like Soundforge, Cool Edit, Wavelab, etc...) and and a program like T-racks.
T-racks is basically a mastering effects rack. It applies EQ'ing, compression, limiting and stuff like that on your recordings. It has no real editing abilities. Also no real recording features.
Audio editing software are a little bit more powerful. You can cut, copy, paste and all that stuff. Also do a lot of other things (resample, record, mix several recordings). The effects that you can apply differ from program to program. Some come with more powerful effects, some with more handy ones. But most of them can also accept third party effects. In that optics, you could say that those programs can do anything T-racks can, if you have the right plugins...
If you are playing in the league of programs like Soundforge, Wavelab and the likes, I'm already intended to say the quality is tops no matter what, and it all comes down to the interface. You like it or you don't.
And about Cool edit Pro, try to dig a little deeper. It's a pretty powerful program also. You can get as good results with it as with any other program.
So in the end, what program to use? Well personally I use several, just because I like the interface of one better to do this job as another, but for another job I prefer the other...
I feel for recording Wavelab gives you the most control. You can adjust the levels from within the program (with most others you need to go in the Windows config). Also the metering is more precise (you get peak and RMS readings.
But for editing I like Soundforge most. Dunno, it doesn't do much more as Wavelab or Samplitude, but I'm more comfortable using it. Also for applying effects for mastering and such...
For cd burning I still use Samplitude. That's mainly because it was one of the first progs that allowed me to make those mixcd's with tracks pretty fast and accurately (back in the time where I learned to work with it, Wavelab and Soundforge couldn't do disc-at-once, at least not without a plugin). I guess I'm still used to Samplitude. The newest versions of the other progs can do this as well now.
I think it all comes down to your needs. Do you need multitrack ability (producing own tracks or making audio montages). If you don't, Soundforge is a pure mono/stereo editing program. It has some decent plugins and accepts DirectX plugins (Waves, those are killer ones).
If you need an editing program with multitrack options (I'm stating it this way, because there are also multitrack programs with basic editing options like Cubase or Logic), you basically can keep working with Cool edit pro 2. Samplitude and Wavelab are the step up.
For newcomers (people that don't know all those programs' interfaces) I think the latest Wavelab is still the most complete and easy to use. It has some great plugins (EQ is really good), and can not only accept DirectX plugins, but also VST ones (ok, theoretically the directx host progs like Soundforge can use DXwrappers, but those don't always work that nice). So you got more options that way.
If you are going to master, I strongly suggest you look for Waves plugins. Those cost a lot, but ... you know 
Don't get me wrong, T-racks isn't a bad program at all. Very convincing results can be achieved with it. But it's just a mastering rack. If you only need that, no problem (although I recommend the Ozone Isotope plugin, better quality, but you need a dX host). I just feel it's kinda limited.
Also you know my point of view : quality recordings not only depend from the playback equipment, but also the recording post (I record in 24 bit now... yummi).
As for compression, that really depends what you are compressing (single instruments vs complete mix). But a general rule is : unless it's meant as an effect, if you clearly can hear compression, it's already too much...
I suggest you read some (of the hundreds) articles from www.studiocovers.com
I covers a massive amount of topics about audio related stuff (eq'ing, mastering, compression, recording, ...)
Hope this helped,
Thy
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