Thanks guys for all the input. I was able to create my own code instead, based on an old code I had. Its not perfect, but its much better. It reads 16 bit files, converts to mono, downsize to 8-bits and outputs the 8-bit unsigned char code for the arduino project.
I will post the code after I clean it up a little. 
(its a mess and has a few bugs I'm working on)
Wk