damn, this sounds awful! :-(
I can confirm that the file isn't syncable... latest iTunes OS X and first gen iPod Nano.
the downloaded mp3 is an mpeg-
2, layer 3 file actually not an mpeg-1 layer3! (created with iTunes 4.9; mono, 10,025KHz and 24 Kbps (VBR)) that's supposedly why the iPod won't play them.
edit: this site tells us, that "From a purely file format point-of-view, there is no such thing as an "MP3 file". We have MPEG-1 files, MPEG-2 files, and MPEG-4 files, but no MPEG-3 files as there is no such thing as MPEG-3. The "MPEG-3" designation was skipped. Next is MPEG-7, followed by MPEG-21.
What we commonly call an "MP3 file" (that is, a file with a ".mp3" extension) is, from a strictly file format point-of-view, actually an MPEG-1 file or an MPEG-2 file which just happens to contain MPEG Layer III audio data (as opposed to MPEG Layer I audio data or MPEG Layer II audio data). (...) Which type of file, MPEG-1 or MPEG-2, a given (properly named) .mp3 file is, is dependent upon the encoding parameters chosen at the time the file was created. The parameters which determine whether the MP3 encoding software will produce an MPEG-1 file or an MPEG-2 file are the sampling rate (measured in kHz or kilohertz - thousands of cycles per second), the datarate (or bitrate, measured in kbps or kilo bits per second - thousands of bits per second), and the number of audio channels (one channel for monaural or two channels for stereophonic)."
so the iPod should play them, as long as apple thinks the same way. they state in the iPod specs:
"Audio formats supported: AAC (16 to 320 Kbps), Protected AAC (from iTunes Store),
MP3 (
16 to 320 Kbps), MP3 VBR".
2nd edit: I tested a file which I have transcoded via iTunes that has a bitrate of 24 kbps (VBR), is encoded in mono, has a sampling-rate of 11,025 KHz and uses mpeg-2, layer 3 encoding. this file is syncable..
conclusion:
the problem must be something else.. it has nothing to do whether it is mpeg-2, layer 3 or an mpeg-1, layer 3.
3rd edit: a little suggestion.. you could have tested and done a google-search on your own.