Right, Will. Recording is just getting the sounds down on tape. Mixing is fine-tuning those sounds, making sure that every little part
sounds right, fixing the EQ for every part, and maybe editing a little bit. Also part of the mix stage is setting all of the levels of all of the parts ("that guitar solo needs to be louder" or "those background vocals are too loud").
After all of the songs are mixed and they decide which of the songs they want to go on the album, they will send it off to a third party to be mastered. Mastering is just further fine-tuning the album as a whole - putting the songs in the order you want them, with the right spaces between songs (or transitions between songs), making sure the whole thing is at a consistent volume (not one song louder than another), and getting the fades right.
(Edited by jamiecarroll at 8:50 am on Jun. 13, 2003)
Relevant: Prince, PT Anderson, Punk, Post-Punk, Purple, Party of Five, Peter Swanson, Peter Gabriel-led Genesis, "Peter Panic", Paul's Boutique, Potential Energy, Every Features MB member but me.