Is it possible to split the big mp3 file up, or is there any software that any one knows of that can use these cue files? thanks!

You can split up a big mp3 file with mp3directcut.. search this site for a pointer to their web site.

The first two add cuesheet support to XMMS. The last one cuts mp3's. I've used only the first one. I suggest you switch to one file per track, as I think one file per album approach makes the issue too complicated without much benefit.

XMMS mp3cue
xmms-cueinfo
bl0rg mp3cue