With an 060 you won't have any proglems. You can play MP3's at 44khz, in 14 bit, with Paula Calibration. You'll be amazed if you haven't seen it.
Try Amplifier. It's pretty similar to Winamp.
You might not have the settings configured to the best Paua sound you can get,, and have to set them yourself. I haven't used that program cause I don't have a fast enouph processor, so can't help you with that, but read some stuff it's fun. The sound is really good when compared to the "normal " sound one is used from old flopyy disk games, it's said to be near CD quality. There was some talk that humans could only distinguish 14bits so. But there are more factors to sound quality of course.
[EDIT] You can get Amplifier on Aminet
