Alrighty, I almost got MP3's to work correctly! Got rid of the "static" it was user error on my part... copied the mpega060FPU.library instead of the mpega060.library, whoops!
Sounds plays now!!! YAY! However the sound is a bit "grainy"... 11k mono(?) (No I DO NOT have an amiga sound card!) You can read my Amiga systems specs below in my signature.
Is there a way to I adjust the audio chip settings?