Is there an MP3 player that can handle files in CD-audio format?
Sort of. The modern .mp3-only players are only .mp3 (Mostly), but before the mass use of tiny players, There were a rather large numbers of “standard” musical devices that had it added on (Like clocks to everything else). You can find a cd player or a radio that plays .mp3s on the cheap now, but most of these require the music to still be on a disc, cutting out the option of gig capacity. Some cd/.mp3 players do use an actual HD to store the music, but these are more expensive. If have a computer, I’d just rip your cd collection (Called an archival copy, since it saves the physical cds from damage via alternate use) and convert them to .mp3.