I'm starting this topic mainly because I've found no reference of this module on the forums, as a warning to others and/or maybe as a discussion about troubleshooting sound generation issues.
A couple weeks ago I started this project, based on ThirdEarthDesign of building a Star Wars thermal detonator prop with sound and blinking lights ( see the instructable here )
THirdEarthDesign uses a PICAXE to run the led sequence and an adafruit soundboard and amp for the sound effect. I wanted to build my own version from scratch using an Arduino Nano (as everything has to fit inside a ball 8cm in diameter) and an mp3 player module with an SD card (and a PAM8403 amp and some leds and switches)
My local vendor only had the XY-V17B mp3 module in stock, so I went with it, ordered, picked it up, read through the manual several times until I finally understood its I guess badly translated english version (here's the pdf version: XY-V17B manual or just search 13288.pdf) connected everything on a protoboard aaand... it clips horribly.
The XY-V17B can work in different configurations. It knows which configuration he has to work with based on the pinout of its CON ports. For this project I used one of the simplest ones(I/O independent mode 1), where the MCU communication ports I0 to I7 receive a HIGH or LOW signal that determines the track to be played (named 00001.mp3 to 00008.mp3 in the SD card)
I'm guessing it's some power supply issue. I've tried including some capacitors but I have to admit I don't really know what I'm doing. The mp3 module works either on 5V or 3.3V and I've reduced the test to its bare minimum, using de arduino as a 3.3V power supply to see if the I0-7 ports receiving a 5V HIGH signal from the arduino were the culprit (see schematic below). And it still clips the speaker: a buzzing, vibrating noise over the mp3 soundtrack that's being played. The amp has its own separate 5V power supply to avoid contamination, I've used coaxial cable to comunicate between the mp3 module DAC outputs and the amp's inputs, with a ferrite filter. It still clips.
So, I'm not confident enough in my skills to assert this module is not compatible with arduino, after all, the first post might prove me wrong with a simple solution I haven't thought of, but... caveat emptor.