I use a program called Easy MP3 Recorder and just record the stream from WAVE out. The MP3's come out great. I listen to them in the car all the time.
Not a bad workaround, also mp3DirectCut can do it, but it's not lossless way.
Precisely the point. Going from MP2/MPA/AC3 to WAV and back to MP3 is transcoding and will add compression artifacts. If you're not concerned with quality that may be acceptible.
Winamp will play MP2/MPA/AC3. It will convert MP2/MPA to WAV also by using the disk writer output plugin, and it's very very fast.
AC3 in Winamp requires ffdshow or Valex AC3 decoder. Valex's plugin sounds terrific you cannot convert to WAV. I haven't tested that with ffdshow.
A program called HeadAc3 will convert AC3 to WAV and offers options for multi-channel files.
TMPGEnc demux tool will separate MP2 and AC3 from an MPG file.
Womble MPEGVCR will to but it always writes the audio as an MPA file even if it's AC3, you must rename it.
BeSplit (related to the very nice program BeSweet) will cut/trim MP3 and MP2 without recompressing. FREE.
Twinahn 1020A, WinXP Pro, Dual Athlon 1800, 3 meter C/Ku dish and toroidal Ku dish.