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Audacity is a powerful open source audio recorder and editor software licensed under the GPL2.
With Audacity you can record sound from various sources like microphones, mixers, pretty much anything that your sound card can handle. It support multi-channel recording if your card also does.
You can also import existing audio files to Audacity. It supports WAV, AIFF, AU, Ogg Vorbis, MP2, MP3 and raw audio files import.
Once you have an audio piece to edit you can copy, cut, paste, delete parts, apply various effects... When you are ready you can export the final result to WAV, MP3 or OGG audio files.
Audacity is packaged with LADSPA plugins (more than 90), VST-enabler that allow you to load VST effect plug-ins and Lame MP3 encoder.
Audacity screenshots
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