CD Quality files are the least compressed of your music files (.WAV files are not compressed at all). If you have large amounts of free disk space, then this option is the best selection.
You have two options for recording in CD Quality format:
If you select MP3, you will use the fastest compression standard available, developed in partnership with Xing Technologies. These files will be compressed 12:1 (compared to 18:1 in Near CD Quality mode) and added to your database. They will not be encrypted.
If you select .WAV, your songs will be recorded and copied to the subdirectory you have chosen in this non-compressed format. They will not be encrypted nor added to the MusicMatch Jukebox database.