Thanks Michael! It's working!!!
In case anyone finds it helpful here's the key points from Michael's email that helped me do this right:
1) First off, the file linked in your post using the download link is corrupt. For some reason, when I downloaded it, it would not play in any of the mp3 players i have. So that's problem #1.
----I reloaded the files
2) Do you want the player to show up? or not.
----Yes
3) If you do, the better way to do it is to upload your file and in the new post form that you use in wordpress, look for the "Podcast episode" block towards the bottom of the page. Just paste your file name of your mp3 in there. Then set the player controls (weather or not you want the player and where you want it to show up) in the Powerpress control panel under "appearance". That way you don't have to paste in the short code [powerpres = filename.mp3]
----working perfectly!!!!