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Do you have any sort of wave editing software, such as Wavelab or Soundforge? (there are plenty of free ones out there as well). There are many, many, many options for converting mp3s to WAV files. I just typed in "mp3 to WAV" in google and it gave me 1,590,000 results.
You will not lose quality going from a 320Kb mp3 to a WAV. The WAV format has capacity for about four times the information of a 320K mp3. It won't make it sound better (since mp3 is a lossy format, even at 320, it'll be missing some things from the original WAV file it was converted from - going from WAV to 320Kb mp3 you'll definitely lose quality, going the other way you won't lose quality, but you definitely won't gain back the quality that was lost earlier).
A lot of remixes of old tracks are done by getting access to the original multitrack recordings. As Eric J said, you could try some creative EQing, but the results will likely sound horrible. Better to find tracks which have certain elements exposed - a verse containing a vocal and only a soft guitar, or an intro to a song which has just the main guitar riff with no drums or bass or anything else. (on a side note, I don't quite understand your point about old songs not being available as 320Kb mp3s - why is this an issue? I'm sure they're available as vinyls, which can sound subjectively better to some people - in any case, recording the vinyl into your sequencer of choice at full WAV quality will easily give you the quality you're after - plus will have a wider frequency/dynamic range than a 320Kb mp3)
As for Recycle, it helps to read up on products you're paying good money for, whether they'll do what you want them to or not, before you buy them.
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