You can't increase the quality of an MP3 already poorly encoded. The only remedy is to re-encode it.
MP3 is lossy, if you decode in wav you'll get a wav with the information of the 128 bits MP3. Maybe if you find a decoder that can do a bit of dithering you could improve the sound a very little bit, but it doesn't worth it.
When re-encoding the wav, you'll maybe even lose some information instead of gaining better quality. When the guy encoded the wav in MP3 he lost information because the encoder tried to remove things hard to hear and this changed the waveform. Re-encoding the wav file will get you another waveform. Re-encoding in MP3 will change the waveform again, because the encoder will think something is hard to hear but this sound was already modified by the first encoding. At the end, you'll get something that isn't very close to the original. You can't get more than the 128 kbits MP3 had at start. The encoder will not "invent" what is missing.
That's a bad issue, this is why we always should encode in good quality at the beginning.
I think it's better for you to keep the 128 kbits MP3 like it is. You can make experiments if you want too! I don't think it's worth it, but you'll see by yourself!
There's a MP3 software player that do dithering when playing songs. It improves the sound a bit. Try it if you want to. It's Coolplayer <A HREF="http
/coolplayer.sourceforge.net/" target="_new">http
/coolplayer.sourceforge.net/</A>
This player will give you the best sound quality.
You only need to set it to Cooler Waver Mapper instead of DirectSound and that's it.