Im regards to your piracy issue question.
I am sure I read in an interview that your music is "locked" so there is no way to download the music. However you can if you want make the music an object so you can give the player a reward if you wanted.
Appart from my new stuff all my music is copyright so I would imagine Putting in the corner of screen "music copyright to bla music for game only all rights reserved" should cover you from a legal stand point (if somone steals it and trys to go commercial for example. In other words wound't normal copyright law apply (same with photos etc used to?).
I meant as a medium for illegal music sharing, from music industry's perspective, because the level creator can add copyrighted music.
And I can certainly record any sound that comes out of PS3 with pretty high quality.