Here's the link to download AudioGrabber.
http://www.audiograbber.com-us.net/
Audiograbber is a CD "ripping" program (copy songs from CD's) that will either rip them as wav or MP3. However, it has an additional feature of converting wav's to MP3's, either one at a time or you can select several and convert them all (it will create a new mp3 file, it won't delete the wav file).
This used to be shareware but was made freeware about a year ago.
I've used it (bought it when it was shareware) and I know b0b also uses this program.
As far as one program "talking" to another. Many programs will, by default save the audio file as it's proprietary format - some such as recording software must do this so you can relaod and edit the recorded file. Once it's "mixed" to a stereo wav or mp3, it can't be "unmixed" to separate tracks. e.g. if you have 6 tracks for a recording and you save it in the recording programs format you can then retrieve it and continue recording editing of individual tracks, etc. If it's saved as wav or MP3 you can't do that.
wav, mp3 and to a lesser extent wma are the "standard" audio files and are transportable to most PC's, regardless of the type (Windows, MAC, Linux). Wav files are "full fidelity" files, mp3 (most bitrates) and wma files are compressed files and something less than full fidelity (and if you have an mp3 file and convert it to a wav you will not recover the full fidelity - once it's gone it can't be recovered).