I need to record audio from mpeg/avi files.  Preferably to the .MP3
format but .WAV is acceptable.  I need a software based solution for
this (i.e. nothing than involves recording to outside devices)...less
than $100.00 would be good.  Less than $50.00 would be better.

Hello basesurge!

How about $0.00?

VirtualDub is a program which lets you do all sorts of video
processing, including re-encoding, image filtering, and, of course,
audio recording. It only extracts to WAV format, but it does do this
very reliably.

Once you've downloaded it, simply unzip it into a folder of your
choice, run VirtualDub.exe, load the video file, and choose "Save WAV"
from the File menu. Depending on the length of the video, there may be
a short wait.

You can get VirtualDub from: http://www.virtualdub.org/

I hope this helps! If anything's unclear, though, please don't
hesitate to use the "request clarification" feature before rating this
answer.

Regards,

--seizer

The program was a bit "geeky" but I figured it out after a while.

Wow, seizer, what a find! I had been wondering whether such a product
existed, and you've found one that is free of charge!!! Thank you!