I say abandon the MP3-on-CD concept. You'll have to compete with Pioneer and Aiwa and there's no way a start-up company would be able to compete.
You're best bet is to create an MP3 headunit with a hard drive. The hard drive could be set up like a CD Changer - a separate unit that goes in the back seat somewhere or in the trunk. Make the HD upgradable and able to connect to our PC's and THEN you'd have a sellable product.
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