I too experience the same problem, although I do not intend to purchase
music in MP3 format, I was just curious.

The dialog states "MPEG Layer-3 audio decoding technology licensed from 
Fraunhofer IIS and Thomson."
Unless I'm mistaken, this seems to imply that you need to purchase MP3 playback 
in order to use certain Ubuntu One features as most of the content is in MP3 
format anyway (this in itself seems to go against Canonical's statement "Ubuntu 
is free. Always has been and always will be.").

Anyway, I think the dialog alone is confusing enough to many users
coupled with the issue that there are no messages given after an
attempted install.

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https://bugs.launchpad.net/bugs/932103

Title:
  Cannot install MP3 playback support; silently fails

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