Oh my god, this sounds horrible!!
I haven't compared the files yet, but if this is true, if they really sounds like garbage, I'm considering not to use SoundCloud and to do it an alternative way, if there is one.
The problem is, SoundCloud became quite poerful. Rootmusic, for instance, only allows uploads from SoundCloud.
Anyway, I will do some test uploads in different formats and try to verify the statements in the thread.