I am wondering if this version of the game has the better music or not.

Normally the game plays MIDI music, but it supports playing a CD ingame. You can download the soundtrack MP3s separately and burn into a CD if you like. IMO it is not worth it, the MP3 soundtrack doesn't sound that great. Many of the songs work better as a simple MIDI.

They really should do a Wav-rip of the music. No point in burning 128kbps mp3's onto a CD. The original CD actually sounds great.

FLAC would be ideal. Loseless compression means that it would be same quality as it is on the CD.