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The most useful porject presently available with Drupal to introduce Audio to your site seems to indeed be the Audio module.

It is reasonably well documented but you may find these links helpful since it is a complex bundle of modules

• Ches Martins Audio Module Install Instructions - complete step by step guide
• Theming Players in Audio Module
• Podcasting with Drupal

Pitfalls I made when trying to get the player working were

• Trying to upload files ripped at too high kbps
  • 56 kbps worked fine for me
•  Not downloading the id3 libraries
  • You also have to configure where they are located (install them in /modules/audio/)
  • Set their location by visiting yoursite.com/admin/settings/audio/getid3