Well actually, crossfading sort of half works with ogg files. I can't remember which way it is, but it only fades one direction when using oggs. (It either only fades the start of an ogg, or it only fades the end of an ogg.) So in some cases, it actually seems to work cool, especially if you're mixing mp3 and ogg files.
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Dario
MK2 in an Impreza 2.5RS