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audio to text transcription software

Excuse me dudes, this seems to be the only thread I can find about audio conversion. Recently i have a related question, can some one answer? I want to convert XM to MP3 with this XM converter as you can see "[

]". It claims that it is capable of reducing audio size. But I have no idea why, after conversion to mp3, the XM file gets bigger size while the audio quality does not get better.. Is MP3 worse than XM?