No, I played an 8MB sized sound file before.
Stereo is not available because there are some stereo specific bugs, and the file being transfered has half the content for twice the size.
The audio range on the sound brick is too small for either stereo or mono to seriously use it for background music. I suppose you could use lots of them, but the brick range is a lot bigger then the audio range, so you would only be able to cover half the server.