The original recording is clean. The static you're getting comes from what is done to the sound when you digitize (edit) it. There is a known issue with the method that you're using. Recording in 16-bit 44kHz stereo audio and then down-sampling the file to an 8-bit 22kHz mono file will result in a lot of anti-aliasing artifacts (static).
The workaround for this issue is to record the file in 8-bit mode from the beginning instead of downsampling. However, you must keep in mind that any program which records in 8-bit mode such as Fusion Recorder, Sound Edit Pro, or the Sound Control Panel will introduce some noise with the signal. Other applications, such as Sound Sculptor, will allow you to record in either 8- or 16-bit mode, so the issue can be avoided. You may also want to make sure you are using the latest version of Apple's Sound Manager extension (v 3.1). It is no longer a separate extension in System 7.5 or later, but instead is built into the System file.
There is also a known issue when using QuickTime 1.6.1 and MoviePlayer to record 16-bit audio from an audio CD. The recording that results from this combination of software will have a lot of static. The combination of QuickTime 2.0 and MoviePlayer 2.0 fixes this issue.