I was going through the top 10 iPhone Apps on Time.com and found and installed iTalk by Griffin Technology.
I installed it via the iPhones App Store, and made my first recording within the same minute. Here are some screen shots of the iTalk app.
Next, I went to the iTalk Sync download page and downloaded and installed the iTalk Sync on both my PC/XP box and my iMac/Tiger. After I rebooted my Windoze box (of course you don’t have to reboot your Mac), I started up the iTalk Sync and drag/dropped my test recording on the desktop.
The iTalk app saves files in AIFF format. The recorded AIFF files was 1.2MB and the converted mp3 files was only 133KB at 32kbps. I use Switch Sound File Converter for Windows from NCH Software to convert the AIFF to MP3. This program is really free with no trial period, adware, or file time limits.
Here is my test recording: