ya, thats the exact one I got for my wife. it does skip some on large bumps (if you hit a pothole dead on. but we don't much take the volvo off-roading so it almost never comes up).
on the other hand the sony in my jeep has never skipped yet
as far as quality of sound if you rip your own mp3's at a rate of 160 kbps (= to cd quality) or higher then there is no difference in sound quality. my software that came with the audigy card will encode at 320 kbps, twice cd quality (though I see no point at recording at a higher quality than the source, just a waste of disk space). most of the people I see who say mp3 doesn't have the sound quality either rip their own at to low a bit-rate or using a hardware or software that can't produce 16-bit sound or better. or they download them off the net from people who ripped them at a lower rate to save bandwidth on downloads.
some of the songs that I've got off the net are of very low quality. and the volume levels vary drasticly from song to song, making putting a decent disc together harder. (just one more reason why I go ahead and buy my own cd's and just rip them to mp3 myself. plus you can avoid that whole "you stole my inelectual property" argument) but I do still download some of the harder to find music. (you don't see much John Prine at the local music store

)