i downloaded and extracted to the file the readme told me to but it doesnt seem like theres anything that plays

Your not meant to play them yourself as the songs are in oob? Format (or something like that) but it's a type of format that can't be played without a codec.

Just stick all the songs in the data/music folder.

Data/OGG

the file is OGG Vorbis format, or is there other file format?

Audio

This menu allows you to change the volume of the music and the various sounds.

[...]

In-game music:
LFS supports playlists and here you can see and change which playlist is being used at the moment. Using 'Skip' you can advance one song and using 'Select' you can directly choose a song.
Channels:
Using this button you will enter the interface for playlist creation and editing. Channel 1 is the standard for all setup screens and can not be deleted. You can add, rename and delete playlist on the left of the screen. On the right you can add tracks assign a song to each track and delete tracks. To ensure that a track will be played back you have to its priority with 3 being the highest priority, 1 the lowest priority and – the setting to prevent a track from being played. The higher the priority of a song the more likely it is that it is being played back. This means that if you have two song of the same priority you will hear both song equally often but if the one song has a priority of 3 and the other a priority of 1 you will hear the first song much more frequently.
TIP: The music files of LFS are in OGG Vorbis format. You can create your own music files using a freeware encoder available at www.vorbis.com or using Audacity. To play the songs back within LFS they have to be in the ..\Data\Ogg directory.



http://en.lfsmanual.net/wiki/Options#Audio

I was close, oob isn't far of ogg And whoops I got the directory wrong :/