This is resolved (for me at least) with a fresh install of Karmic Koala (Rhythmbox 0.12.5, ubuntu 9.10)
** Changed in: rhythmbox (Ubuntu)
Status: Triaged => Fix Released
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WMA files not playing in Rhythmbox 0.12 with crossfading enabled Jaunty
https://bugs.launchpad.net/bugs/353589
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