do a search for "digidesign" website-
they used to have a free version of "protools"
available- its a great and powerful multi channel
recording program, and does a great job. then
find a program that will convert raw audio into
mp3s. I've found that opening a protools doc in
Quicktime produces a file that iTunes can convert
into an mp3-
another good program available commercially is
BIAS Peak LE. the full version is pretty pricey,
but the smaller (LE) version can be had for around
$60 USD. Older versions I've seen for sale at second
hand stores for about $9 US. You can probably find it
cheap on eBay.
Peak will do your audio conversion, and allow you to
compress to MP3's. Less complicated than the Pro Tools
route.