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Soundforge 6.0 is what i use.
As for a MD, they are allright, very convenient to use, but you WILL lose sound quality due to the ATRAC compression. It's OK for making CDs for the car, or to hand out to friends, but if you want a full quality CD release, i reccomend going straight to the computer.
One MAJOR problem and misconception of MD is that you can record it analog and then transfer to the computer digitally. you CAN'T do this, at least not on SONY ones. they have deliberately engineered it so that you can not transfer analogue recorded material digitally. They did this to thwart copyright infringement.
The only way to get your mix off the MD onto the computer is to play it out the headphone jack of the MD (introducing another digital to analog conversion), then in the line in of your sound card (converting back to digital) and record (with soundforge or whatever you use). This also means if you have an hour long mix, you have to wait an hour while it transfers, and preferably not use your computer during this time to make sure it doesn't skip or anything.
So, you have to record analog with your computer anyway, may as well just record it straight into your sound card in the first place, unless of course, like me, your decks and computer are in different places and you can't do this.
Another disadvantage of MD is that your recording time is limited to only 80 minutes in standard mode. Enough to record a single CD, but if you want to record a long mix, you have to use LP or LP2 compression, both which degrade the sound (LP2 is especially bad, it removes a large amount of the bass, and is very noticeably lacking)
If you use LP you can get 2 hours 40 minutes, and in 2LP mode, you can get 5 hours 20 minutes, which still wouldn't be enough, say to record a whole party or something.
with a computer, you are limited only by the size of your harddrive, and you can record straight to it, without a lossy intermediate step.
As for soundcards, you mobo soundcard is definitely not of high quality. I would suggest an M-Audio 24/96 for recording, that's what i plan on getting.
http://www.m-audio.net/products/m-audio/audiophile.php

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