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The VS1053 is a great MP3 decoder, and with this breakout board, it's easy to drop it into any project. The VS1053 is capable of decoding Ogg Vorbis/MP3/AAC/WMA/MIDI audio and encoding IMA ADPCM and user-loadable Ogg Vorbis. Can drive 30 ohm headphones with no additional power supply..
Project description, more information and ordering can be found at https://www.sparkfun.com/products/9943
Example configuration code: http://www.sparkfun.com/datasheets/PCB/vs1002_Sine_Test_Tone.c
MIDI Code Example: http://www.sparkfun.com/Code/MIDI_Example.pde
MP3 Decoding Example Sketch: http://dlnmh9ip6v2uc.cloudfront.net/datasheets/Dev/Arduino/Shields/MP3_Shield_Example.zip