James, 27, from Cardiff, plays the drums, guitar and piano.
He's already a friend of the stars, because he shares a flat with Tony from Liberty X.
Peter, 21, from Colchester, works as a management trainee.
He has a history degree and his musical idols are Radiohead.
Audley, 31, from London, didn't start performing seriously until he was 24.
He works in IT and he loves designer clothes.
The remaining contestants will be chosen in two more heats and the finalists will enter the Academy on 6 August.
The winner will get a recording contract and a luxury lifestyle for a year.
Make sure you come back for daily updates from CBBC's Jake and Holly in the CBBC studio in the Academy's garden.
They'll be keeping a close eye on the students, tutors will be dropping in for a gossip and there'll be loads of chances for you to get involved too.