hldj.org

1) Does HLDJ launch the game correctly for you?
No, i unchecked it because it wouldn't start up garrysmod, instead it would start up TF2 :\

2) Does "HLDJ Loaded Successfully" appear in console on starting the game (with no errors)?
Yes

3) What is the console output after selecting a song, or issuing other HLDJ commands such as "hldj_next"?

Host_WriteConfiguration: Wrote cfg/hldj_cmd_b.cfg
Loaded : Bloodhound Gang - The Bad Touch

4) After loading one of the sample audio files, perform a search of your Steam directory (without stopping HLDJ) for the file "voice_input.wav" - does it show up, and if so, where?
Yes, in my cfg folder.
5) Does voice normally work for you? If not, or you do not have a mic, have you remembered to set up any applicable options in your operating system and/or the game?
Yes my voice works for me

Whenever I press f5 to play the music, it just plays some weird dragon like breathing sound.

#4: You have the incorrect game directory, remove it and re-add the game to Setup making sure the directory is correct. The correct game directory will contain at least "gameinfo.txt".