This time around I was using it for music.
tool sounds sound\music\8bit\loops ogg 0.1 (using ogg 1 gives me EXCEPTION_ACCESS_VIOLATION.)
Had the music set to 16 bit stereo, everything compiled correctly once I managed to split the sound up into permutations, sounded great ingame. I got Pyong to make several positive comments about it, and Nexus found my other music (this one more hidden).

Really, I think the only problem was that the OGG codec has trouble in Windows 7, and it says the file is unable to be accessed. The updated version of the codec works great, I think the sounds sound slightly better as well, so I decided to bump this old thread and keep it relevant.