What is the frequency response and THD?
This is mainly a function of the MP3 encoder and the bitrate that a given song has been encoded at. An interesting article which compares the popular encoders can be found here. There is also an MP3 analyser that can estimate the quality of MP3 recordings, and is downloadable from here. Also be sure to connect your power supply in a ‘star’ configuration to prevent noise coupling from the HDD electronics into the MP3 player audio stage. That is, have dedicated power leads for the HDD 5V and the player 5V. If you have a noisy HDD, the use of an electrolytic or local 7805 voltage regulator at the MP3 player power connector should clean this up.