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Hmm... So you mean that LP2 and LP4 sound better than the defaul stereo or mono mode?
No. The default stereo mode beats the LP2 and LP4 modes for quality. Sony's naming system is very confusing, but on any particular recent Minidisc player/recorder, you will generally have ATRAC1-Version x and ATRAC3 available. The recorder will use ATRAC1-Version x for the default stereo and mono recordings at 292 kbits, and ATRAC3 for the LP2 and LP4 (132 kbits and 66 kbits) modes.
On any given Minidisc recorder. SP and mono is the best, followed by LP2 and then LP4.
Players that are Net-MD (high speed transfers via USB from PC to Minidisc) capable use ATRAC3, and the software basically implements an ATRAC3 encoder based CD ripper and mp3/wav/wma to ATRAC3 encoder/transcoder on your PC for the transfers. Some of these programs support "SP" (292 kbit) transfers, but these are actually ATRAC3 recordings transcoded to 292 kbit prior to transfer, sad, but true.
I hope this vaguely shines a dim light on the various options.
Den.