hldj.org

1) HLDJ launches the game correctly for me
2) Successful loading appears (without errors)
3) ?
4) Yes it does - \steamapps\"my steam name"\day of defeat source
5) Yes

-I've tested sample audio and it plays as it sounds like the originally
-I've went through the manual and tried various "solutions"

When I convert an mp3 to wav it sounds a lot more different than the original copy (sounds fuzzy and muffled)
and after that I tried using the Music Converter included with HLSS and when it's converted into a wav it sounds
great on my desktop but when I play it in DoD it sounds greatly distorted.

If you're using a music converter designed for HLSS then there's no guarantee that it'd work for HLDJ. That fuzzy sounding wav is the best quality that can possibly be played via the source engines voice chat, which is what HLDJ does, so use that.