I managed to get some CD code working, but I'm sticking with Hucard ver for now. 
1. Samples are mono - 5 bit, right?
5-bit mono per channel, yes.
You *can* use 2 channels to get 10-bit sample output, but then that costs you 2 channels.
2. What's the best way to transform wav to something that sounds good?
Burn it to a CD? Convert it to ADPCM?
I really don't know why so many people seem to think that spending lots of CPU time to manually pump a 5-bit sample output is somehow a good idea.
I tried using Audacity -> raw out put : mono / 8 bit; then shifting right each byte by 3. It sounds like a mess.
Depending upon your definition of "mess", you've probably got a bug in your code.
3. What Hz should the sample be in?
That entirely depends upon how you intend to control the timing of your output. It's 100% manual, so it's up to you.
Most people use the timer interrupt, and the maximum rate for that is 6991Hz.
You can also use the RCR interrupt to get 15KHz, but that's both more work, and also interferes with using the RCR interrupt for scrolling.
Or you can be like Deflemask's monumentally-stupid ROM output and use 100% of the CPU time and software-loops to get much faster sample output.
It's all up to you.
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