Final Cut Express 3.5 vs. Final Cut Express 4?

I am looking at purchasing Final Cut Express for my company. We have iMovie 6 and have been doing some client YouTube videos using it. We'd like to do more with our video editing but don't feel the need for Final Cut Pro, so FCE seemed like good compromise.
What I'm trying to figure out is which is the better option for us, FCE 3.5 or 4. I've read that 4 does not include something called Soundtrack, but that you can do voiceovers and adjust/fix audio. Can you put music MP3s into your video in FCE4 like you can in iMovie? Or would we need Soundtrack for that?

FCE4 can handle audio like any video-editing app, but it isn't a designated audio program like Soundtrack or Logic. As Tom said, all audio should be 12-bit or 16-bit AIFF before importing.
Note: if you're planning on shooting AVCHD or editing on a machine running Snow Leopard, FCE4 is the only supported version.

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