Thanks for the pointers.
Additional information:
System: Windows 8, Sonar X2 Essentials, Tascam US-1641 interface
Track 1: Vocals --> Cakewalk FX Compressor/Gate ("Light Vocal Compression" preset) --> Cakewalk Reverb (Room preset)
Track 2: Guitar --> Cakewalk FX Compressor/Gate ("Acoustic Guitar Compression" preset with Output Gain being set to 0.0 dB) --> Reverb (Room preset HP filter turned on)
Track 3: Guitar --> Cakewalk FX Compressor/Gate ("Acoustic Guitar Compression" preset with Output Gain being set to 0.0 dB) --> Reverb (Room preset HP filter turned on)
This is my first mix and I wanted to keep things simple. When I said the hiss gets progressively noisy in Wave/MP3 format, it starts around 1:30 into the song and keeps getting worse. The song is about 8 minutes long.
I will definitely try removing the compressor and reverb, and see what happens.
Thanks!
Ravi