I play my own tunes off my laptop, but don't have a copy of tractor - I use PCDJ red, which doesent mix them automatically. But I can't be fecked to actally make all the pitch adjustments live, so I have a number of copies of each tune, each one at a certain speed, so if I want to play at 135, all my tunes are already that speed. Or 140, or 145, or whatever, just takes sorting it out ahead of time. People have given me some shit for this in the past (calling me a cheater, etc.), but I always have the same reply - seeing as I am making all the tunes myself, and I have the power to make them easy to mix (making the speeds the same, pre storing cue points, etc.) I would have to be a grade A fool not do this, as it would be making things harder for myself, for no good reason.
I can get the tunes together well quick smart, which means I have spare time, so I can get the fx going, get a third or fourth track going, or sling a bit of drum machine over the top and get ill with the beats (or have a slurp of drink and roll a fag, hehe). Personally I find this much more fun than fecking about trying to get two records in time with each other.
Another thing - I use high quality MP3's as well as wav's, and honestly cannot tell the difference between them. Maybe on some amazing headphones or in some super acoustic listening booth with £10,000 speakers, but to the average ear, as long as your mp3s are of a sufficent quality, I reckon theres no difference.