I ended up using Audio Hijack because I couldn't get Sound Studio to work for me.
It wouldn't even open the wmp files. I did one track with Audio Hijack, but the draw back to using that was I had to manually start/stop recording, which meant some of the first tracks had extra time before/after them.
But, since this was meant to be transfered to my iPod for a client to hear, I wasn't too worried about an absolute perfect solution. I was, however, quite impressed with Audio Hijack... Impressive idea and it does what it says it does!