mp3 files do NOT need to be converted to work in PowerPoint 2010. In previous versions mp3 files were not embedded but they are in 2010 on. Even in earlier versions they would work but be linked.
Are you sure the media player library has mp3 files? Using 64 bit Office (even in 64 bit Windows) can cause all sorts of problems and is not really recommended unless you use huge (Gb) Excel files.
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