Is this a short loop? A good short .wav could be set to loop in the sounds properties. It would be re-compressed as a .mp3 anyways by Flash. You could even re-compress it further, to cut down on it's size...
Just drag your .wav on the stage or in a movie clip. Select the frame, and in the sound's properties make sure the Sync box is set to "event", and set 50 in the Loop box.
In any case, the Flash output is a mp3, as if you right-click the file in the Library, you can re-compress it even further, until in fact you find the quality acceptable.
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