That is strange. I just dragged my wave file into the editor and it worked. I now have tested it with a sound cue without any problem.
I didn’t change much. I just set the music to loop, reduced the max concurrent sounds to 1 and decreased the volume a lot. Didn’t want to blow my ears out :).
Are your objects being destroyed, when you walk over them? If they aren’t, then it can have something to do with your collision setup.