Correct me if I am wrong:
1) I am not stuck to WAV in the sense that I can also use ADPCM and XMA which have compression. XMA has better compression and higher quality than ADPCM, so it's the obvious choice (until I move to XNA 3.0 where MP3 is supported).
2) I am stuck to WAV in the sense that I can only input WAV into the XACT tool, but the XACT tool can transform WAV into XMA.
3) QuickXap does what the XACT tool does, they both produce a XAP file that XNA can import and use, however QuickXap allows you to import MP3 files! So use it inside of XACT.
4) I should probably use XACT first, before QuickXap, to get a feel of what QuickXap is replacing.
Am I right, or did I slip up?!