From the podcasting section of About.com:
Note: You must first download and install Audacity before you can implement any of these instructions.
# Open Audacity.
# Click “file” and “new.”
# Make sure any external microphone is plugged into your computer and is recognized. To do this, (Windows) go to “control panel,” click on “sounds and audio devices” and look under “sound recording.” (In the “audio” folder). Your microphone should already be recognized in the drop down menu. If not, you may have to install your microphone by following the prompts listed and testing your microphone. The whole process takes about two minutes. (Mac’s follow a similar process-follow the prompts after installing your microphone).
# Click “record.” (Circular icon with red button)
# Record your audio.
When you’re finished, press the spacebar to stop recording or the square icon in the top navigation bar.
# Now edit your track(s) .
# You can import external audio (like music or sound effects) by clicking, “project” in the navigation bar.
# Add effects to your tracks by clicking on “effect” after highlighting a portion of track you want to enhance. Audacity has a number of great features here, including “Amplify” which lets you raise the volume on a quiet portion of track, “Equalization” which lets you clean up/modify your entire track once finished, and “Noise Removal” which allows you to target unwanted noise in a track and remove it universally with the push of a button.
# Mix your tracks. The easiest way to do this is to click “quick mix” under “project” in the navigation bar. However, you can also set the volume to each track by adjusting the top slider (downward arrow icon) in each track field left or right. When you click on the slider you’ll see the word “gain” come up as you adjust. Be aware if you set the volume too high it can result in “clipping” (maxing volume by going too far in the red zone). For more specifics on modifying each track, click on “Audio Track” in the Audacity Help Menu’s Table of Contents.
# Export your track as an MP3. Be aware that you’ll need something called the LAME library to do this. Go to Audacity and download the LAME library. Once downloaded, look for the LameLib file (Mac) or lame_enc.dll file (Windows) and save it in your Audacity program folder. Now go back to the file you want to convert in Audacity. Edit your ID3 Tags, and then choose your bit and sample rates. Finally, click on the “file” menu and select, “Export as MP3.”
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