A computer with a CD-R is an amazing thing, but the size and inconvenient transport of the CD will be it's downfall. I believe a recordable mini-disc like format is in order, except one that doesn't have to resort to compression to store it's data. Also, the ability to store any type of data, be it music, raw text data, or video is a must, as the CD has illustrated. A truly universal, convinient format would be extremely powerful. Recording For live recording, I usually attach the Nakamichi deck below to the Pioneer equalizer below and finally to my computer, where I record digitally.
Quality is surpassingly good, considering the low investment.
I got into MP3 compression when it came out, especially when used in conjunction with CD's. Being able to hold 600 minutes of audio on one disc is pretty cool, even if there is a slight degrade in quality. For applications involving my record collection, it's perfect, because I can restore several albums and store them on one CD, thereby allowing me convent transport of my record collection. I also have a vintage Pioneer sg-9500 equalizer looped in, which is great to compensate for a difficult room. As for speakers, the weaker end of this stereo, I have a set of Jenson 3-ways with a pair of Technics for surround.