@leirbag28:
At the time the CD32 FMV was developed, there was no MPEG 1/2 Layer 3 (or at least it was not popular at that time (1993?). The FMV unit was designed to play back video CDs, which used MPEG1 streams (and this included only MPEG Layer 2). Layer 2 can be encoded much quicker, but needs a higher bitrate for the same quality as Layer 3.
And about MP3s: it really depends on your settings (and the encoder used), you can encode MP3 with 256 kbit/s that sound like crap -- and at the same time generate (VBR) MP3s with <100 kbit/s that sound very close to the original.
(And yes, I think of doing a good encoding job as a kind of art, and most of the stuff you get from the internet is crap, broken, bad quality, truncated, no ID tags or spelling mistakes, so I do the encoding from original CDs myself

).
BTW: Somebody want a LAME3.97beta binary for MorphOS?