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The only reason you would ever want to have your eq's above 0 dB (the middle setting, where it will "notch" into place) is if you are doing some kind of effect. You should *never* have it above this, especially when recording. If the levels are too low, then adjust the line-in volume on your soundcard. If you have the eq's above this, then it will beging to distort. If, when you have finished recording, you think the bass is too low, or there is too much mid or whatever, you should master the recording with a suitable program.
The golden rule for recording is;
0 dB or as close to as possible.
As for the bit about mp3, you said you are doing a CD, right? So why the mention of mp3 at all? You should certainly not try to encode it as an mp3, you will lose sound quality. It has been said before, and I'll say it again. mp3 is a *lossy* format, that is, each time you encode something as an mp3 you will *lose* sound quality. Even if you encode, say, a 128 kbps mp3 into a 320 kbps mp3. You cannot gain sound quality in this way, mp3 takes things out of the sound to reduce the file size. The only way to get these bits back that it takes out is to have the original before it was an mp3.
So, if you are recording a CD, leave it as a WAV.
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