I sent a query to Olympus asking why they had chosen to drop the quality of the high quality recording setting and whther they were able to and planned to upgrade the formware to allow for a higher quality. I am certainly no expert in this. This was their response: "I am not sure what you mean by recording at 128kbps or where the numbers are coming from. That is a data transfer speed. That would have nothing to do with quality of recording. What affects quality of recording is the sampling rate and the frequency response rate. The frequency response rate range of the WS-320 is identical to that of the DS-2. It ranges from 8KHz to 44.1KHz depending on the quality mode that you choose."