Below it the list of supported formats pasted from the manual. I don't think a WAV is going to work.
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Compressed audio files: MP3, WMA, AAC, M4A.
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I would use something to rip the CDs into AAC or MP3 format. I use iTunes on the Mac to rip CDs to 256kbps AAC and the quality is quite good. My iTunes settings are below.
As the CDs are imported iTunes downloads all the ID3 tags and organizes by artist/album. I am able to just go to the file manager (Finder in OS X) and copy the music folders direct to a USB key and then import to the car.
I assume the Windows version of iTunes would do the same for you.
