A customized music recording, selection and playback system providing a convenient means for storing hundreds to thousands of songs on a single system, which provides immediate access to any of the songs in a convenient, easy to operate manner. This audio entertainment system can store audio sound recordings, or even segments of a sound recording selectively, not merely store collections of existing media. The system can use any audio source, digital or analog, for the audio content. The system replaces boxes of phonograph records, boxes of cassette tapes, cases of CDs, and a plurality of musical pieces (or “songs”), by storing all audio information in one chassis. The system is continuously reconfigurable; songs can be added or removed at any time. The system efficiently stores audio information, using a digital audio compression system that preserves near compact disc quality but achieves a large reduction in the size of the stored digital audio information. The compression system is particularly effective for stereo recordings, i.e. two channels of audio corresponding to the conventional dual microphones used in music recording. Thus, many more songs could be stored on the system at a given time.