Olympus WS-300M - Digital voice recorder - flash 256 MB - WMA, MP3 Review

I currently own this model, which I bought for a much lower price at Radio Shack. But I want to start doing Podcasts and this unit does not record in the mp3 format. If you try to convert the saved file using audacity, the program asks you to send the file as raw data. I can't find any prompt for that on my menus.
I do like the easy USB connection and the sound quality, which I've only tested holding the remote mic to my mouth - not at public meetings - does have a powerful pick up.
RadioGal

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