To Pablomedok above, you see how people can really make things up. TOS-link cables transmit digital signal and it is only a yes/no question (signal/no signal). A good TOS-link vs a bad TOS-link is the amount of signal error. All you would hear is how many glitches and jitter, but never how warm or how sweet or how much bass or treble etc. If someone says he can tell these kind of audio characteristics out of a TOS-link, he is just fooling himself and the readers.
Back to MP3. As I mentioned in an earlier comment here, the industry standards (AAC@256kpbs etc) are developed to be transparent in most cases, and I presume MP3@320kbps can do that too. Of course I don’t rule out exceptions and also people with good ears. If you know the technical details enough you can even generate test tones to trip up these codecs, say a square wave or some harmonic combinations. But most of the time it is very hard to tell the difference to most people.
On the other hand, when Jeff claimed “that difference should be audible in any music track”, it is also flawed. For an extreme case of a pure 1kHz tone. It is accurately reproduced down to 64kbps or even less.
Nevertheless, I still believe someone with good ears and equipment can tell the difference for this bad sample although there is little audio quality. Indeed many here claimed they can, and I don’t doubt that. I use average gears (Macbook + Sennheiser PX200II) and yet I can pick up the worst two. Which sample is better than the other is the big question. But hang on, aren’t we talking about telling the difference? We should not be rating which one sounds better. But we don’t even have a reference, where is the difference??? I think Jeff should think of a more proper methodology for conducting his next experiment!