AIFF is a form of audio file which uses no compression, much like a WAV file. This means that what you are recording gets recorded exactly as it was, with no corners cut (aka-CD quality). MP3 files use varying amounts of compression to make the files smaller and more "portable", but the real heart of your question can only be answered if you know the bit rate of the mp3 file. The standard seems to be 128kbps, at which point if you are listening on a good system most people will hear a difference between that and an uncompressed file. As the sampling rate of the MP3 goes higher, so does the sound quality: at 192 kbps, I can barely hear a difference between the two, and even then sometimes it's my imagination. Below 128, all sustaining sounds (cymbals, reverb tails, etc.) start to sound really grainy.