I'm a vinyl freak as I think the sound on vinyl is better than on cd and I think the sound on cd is better than mp3, so I'll always try to find it on vinyl. If I can't find it on vinyl (or if it's only available on cd or if the price excedes my maximum limit) I'll buy it on cd. I'm a little on the same side as Xenophobe. I want to be able to hold the music in my hand instead of some file on the computer. I know that it's the music it all comes down to, but I think it's the little things that make up the big picture. If I download a song and I think it sucks I'll delete it. If I like the song, I'll go look for the record.
I don't believe that shit with "Record companies don't loose money anyway". If people download the song/album instead of buying the record, how can the record company avoid loosing money? My big brother is a bit of a computer nerd and I don't think he has bought a cd since he discovered there was something called the internet and mp3's. Before that he bought cd's. James Brown, De La Soul, Jimi Hendrix, Frank Sinatra and so on. Now he just downloads all the time! When my mother had a cd on her wishlist for her birthday, he said "Why not just download it and burn it onto a cd-rom?"!!??
Of course his point in that you may not wanna spend 150 Kroner (aprox. $19.50 - average cd price in Denmark) on a cd where you only like one song, but then there's also something called SINGLES!!! Besides that there's also second hand stores. I for instance wanted "Forgiven, not forgotten" by the Corrs, because of their song "Toss the feathers" and I found it in a second hand shop for 45 Kroner (aprox. $5.8), which is about 1/3 of the original price! On top of that I learned that the song "Closer" on that cd also was good!
To stop people downloading mp3's I think the record companies and bands should do something too. A band like Empyrium is great at this point. I found out they had released a new album ("Where at night the woodgrouse plays") around the time of it's release and I didn't want to go buy without hearing it first, so I visited their website and you were able to download three of four songs from the record in mp3 format. The songs were about 2 min. I think and they were in that 32kps instead of 128. Downloading was faster and after hearing that I wanted to get the album. If bands and record companies started doing this I don't think that many would download (maybe!). On Joe Satriani's website it's the same thing, although the clips are a bit short, but you can hear them in realaudio, Windows media and mp3.
I gotta go eat now, so I can't comment more on this.