FM audio Ok, only static with music

Have you tried playing the same file on the computer? Connect the Fuze to the computer, find the file on the Fuze and play it from WIndows Media Player (or Winamp or whatever you use). My guess is that the file itself is bad.

If it plays correctly from WMP, then get the Gspot Codec Appliance and find out exactly what kind of file it is.

http://www.headbands.com/gspot/