Cass ... I use the ZOOM H4n for recording and can select what I want for output - mp3/wave ... if your H2 allows you to do the same it should not be a problem ...
Then you should be able to record that into your software and record as many tracks as the software allows ...
I've also recorded wave files on the H4n - it allows me to record 4 tracks - and then 'fed' them into ACID Pro ... ACID then lets me save as an mp3 ...
Hope this helps ...
PS how is Andy doing?