Running the GStreamer debugging I found some important information.
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<streamsynchronizer0> completed state change to READY
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<streamsynchronizer0> notifying about state-changed NULL to READY (VOID_PENDING pending)
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<playsink0> child 'streamsynchronizer0' changed state to 2(READY) successfully
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<playsink0> completed state change to READY
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<playsink0> notifying about state-changed NULL to READY (VOID_PENDING pending)
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<playbin20> child 'playsink0' changed state to 2(READY) successfully
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<playbin20> completed state change to READY
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<playbin20> notifying about state-changed NULL to READY (VOID_PENDING pending)
DEBUG [2500:MainThread] mopidy.audio.gst
Got state-changed message: old=GST_STATE_NULL new=GST_STATE_READY pending=GST_STATE_VOID_PENDING
DEBUG [2500:Audio-3] mopidy.audio.gst
State change to GST_STATE_READY: result=GST_STATE_CHANGE_SUCCESS
DEBUG [2500:LocalBackend-7] mopidy.backend
Backend translated URI from local:track:Dropbox/Falco/Falco-One%20Night%20in%20Bangkok.mp3 to file:///music/Dropbox/Falco/Falco-One%20Night%20in%20Bangkok.mp3
INFO GST_PLUGIN_LOADING gstplugin.c:859:gst_plugin_load_file: plugin "/usr/lib/arm-linux-gnueabihf/gstreamer-0.10/libgstdecodebin2.so" loaded
INFO GST_ELEMENT_FACTORY gstelementfactory.c:376:gst_element_factory_create: creating element "uridecodebin"
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<uridecodebin0> completed state change to READY
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<uridecodebin0> notifying about state-changed NULL to READY (VOID_PENDING pending)
INFO playsink gstplaysink.c:1105:do_async_start:<playsink0> Sending async_start message
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<streamsynchronizer0> completed state change to PAUSED
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<streamsynchronizer0> notifying about state-changed READY to PAUSED (VOID_PENDING pending)
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<playsink0> child 'streamsynchronizer0' changed state to 3(PAUSED) successfully
INFO GST_STATES gstbin.c:2532:gst_bin_change_state_func:<playbin20> child 'playsink0' is changing state asynchronously to PAUSED
INFO GST_ELEMENT_FACTORY gstelementfactory.c:374:gst_element_factory_create: creating element "filesrc" named "source"
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<GstBaseSrc@0x23a40a0> adding pad 'src'
INFO filesrc gstfilesrc.c:374:gst_file_src_set_location: filename : /music/Dropbox/Falco/Falco-One Night in Bangkok.mp3
INFO filesrc gstfilesrc.c:375:gst_file_src_set_location: uri : file:///music/Dropbox/Falco/Falco-One%20Night%20in%20Bangkok.mp3
DEBUG [2500:Audio-3] mopidy.audio.gst
Got source-setup: element=/GstPlayBin2:playbin20/GstURIDecodeBin:uridecodebin0/GstFileSrc:source (__main__.GstFileSrc)
INFO GST_ELEMENT_FACTORY gstelementfactory.c:376:gst_element_factory_create: creating element "decodebin2"
INFO GST_ELEMENT_FACTORY gstelementfactory.c:374:gst_element_factory_create: creating element "typefind" named "typefind"
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<GstTypeFindElement@0x31f0838> adding pad 'sink'
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<GstTypeFindElement@0x31f0838> adding pad 'src'
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad typefind:sink
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link sink:proxypad3 and typefind:sink
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked sink:proxypad3 and typefind:sink, successful
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<GstDecodeBin2@0x23a6078> adding pad 'sink'
INFO GST_ELEMENT_PADS gstutils.c:1698:gst_element_link_pads_full: trying to link element source:(any) to element decodebin20:sink
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad decodebin20:sink
INFO GST_PADS gstutils.c:1596:prepare_link_maybe_ghosting: source and decodebin20 in same bin, no need for ghost pads
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link source:src and decodebin20:sink
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked source:src and decodebin20:sink, successful
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<typefind> completed state change to READY
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<typefind> notifying about state-changed NULL to READY (VOID_PENDING pending)
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<decodebin20> child 'typefind' changed state to 2(READY) successfully
INFO GST_STATES gstelement.c:2435:gst_element_continue_state:<decodebin20> committing state from NULL to READY, pending PAUSED, next PAUSED
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<decodebin20> notifying about state-changed NULL to READY (PAUSED pending)
INFO GST_STATES gstelement.c:2442:gst_element_continue_state:<decodebin20> continue state change READY to PAUSED, final PAUSED
INFO filesrc gstfilesrc.c:969:gst_file_src_start:<source> opening file /music/Dropbox/Falco/Falco-One Night in Bangkok.mp3
INFO GST_PLUGIN_LOADING gstplugin.c:859:gst_plugin_load_file: plugin "/usr/lib/arm-linux-gnueabihf/gstreamer-0.10/libgsttypefindfunctions.so" loaded
INFO typefind gsttypefindelement.c:178:gst_type_find_element_have_type:<typefind> found caps application/x-id3, probability=100
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad typefind:src
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad typefind:sink
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link typefind:src and decodepad0:proxypad4
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked typefind:src and decodepad0:proxypad4, successful
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad audio-sink:sink
WARN alsa pcm_hw.c:1557:snd_pcm_hw_open: alsalib error: open '/dev/snd/pcmC1D0p' failed (-16): Device or resource busy
WARN alsa gstalsasink.c:689:gst_alsasink_open:<alsasink0> error: Could not open audio device for playback. Device is being used by another application.
WARN alsa gstalsasink.c:689:gst_alsasink_open:<alsasink0> error: Device 'default' is busy
INFO GST_ERROR_SYSTEM gstelement.c:1964:gst_element_message_full:<alsasink0> posting message: Could not open audio device for playback. Device is being used by another application.
INFO GST_ERROR_SYSTEM gstelement.c:1987:gst_element_message_full:<alsasink0> posted error message: Could not open audio device for playback. Device is being used by another application.
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<alsasink0> have FAILURE change_state return
INFO GST_STATES gstelement.c:2335:gst_element_abort_state:<alsasink0> aborting state from NULL to READY
INFO GST_STATES gstbin.c:2542:gst_bin_change_state_func:<bin0> child 'alsasink0' failed to go to state 2(READY)
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<bin0> have FAILURE change_state return
INFO GST_STATES gstbin.c:2542:gst_bin_change_state_func:<outputs> child 'bin0' failed to go to state 2(READY)
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<outputs> have FAILURE change_state return
INFO GST_STATES gstbin.c:2542:gst_bin_change_state_func:<audio-sink> child 'outputs' failed to go to state 2(READY)
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<audio-sink> have FAILURE change_state return
INFO GST_ELEMENT_PADS gstpad.c:1750:gst_pad_unlink: unlinking typefind:src(0x27d3a68) and decodepad0:proxypad4(0x27c6368)
INFO GST_ELEMENT_PADS gstpad.c:1795:gst_pad_unlink: unlinked typefind:src and decodepad0:proxypad4
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link typefind:src and decodepad0:proxypad4
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked typefind:src and decodepad0:proxypad4, successful
INFO GST_ELEMENT_PADS gstpad.c:1750:gst_pad_unlink: unlinking typefind:src(0x27d3a68) and decodepad0:proxypad4(0x27c6368)
INFO GST_ELEMENT_PADS gstpad.c:1795:gst_pad_unlink: unlinked typefind:src and decodepad0:proxypad4
INFO GST_PLUGIN_LOADING gstplugin.c:859:gst_plugin_load_file: plugin "/usr/lib/arm-linux-gnueabihf/gstreamer-0.10/libgstid3demux.so" loaded
INFO GST_ELEMENT_FACTORY gstelementfactory.c:376:gst_element_factory_create: creating element "id3demux"
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<GstTagDemux@0x3308170> adding pad 'sink'
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link typefind:src and id3demux0:sink
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked typefind:src and id3demux0:sink, successful
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<id3demux0> completed state change to READY
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<id3demux0> notifying about state-changed NULL to READY (VOID_PENDING pending)
INFO GST_ELEMENT_PADS gstelement.c:972:gst_element_get_static_pad: no such pad 'src' in element "id3demux0"
INFO filesrc gstfilesrc.c:969:gst_file_src_start:<source> opening file /music/Dropbox/Falco/Falco-One Night in Bangkok.mp3
INFO filesrc gstfilesrc.c:969:gst_file_src_start:<source> opening file /music/Dropbox/Falco/Falco-One Night in Bangkok.mp3
INFO id3demux gstid3demux.c:155:gst_id3demux_identify_tag:<id3demux0> Found ID3v2 marker, tag_size = 20480
INFO default gstid3tag.c:133:gst_tag_from_id3_tag: Cannot map ID3v2 tag 'WXXX' to GStreamer tag
INFO default gstid3tag.c:133:gst_tag_from_id3_tag: Cannot map ID3v2 tag 'PRIV' to GStreamer tag
INFO default gstid3tag.c:133:gst_tag_from_id3_tag: Cannot map ID3v2 tag 'PRIV' to GStreamer tag
INFO default gstid3tag.c:133:gst_tag_from_id3_tag: Cannot map ID3v2 tag 'TOPE' to GStreamer tag
INFO default gstid3tag.c:133:gst_tag_from_id3_tag: Cannot map ID3v2 tag 'NCON' to GStreamer tag
INFO id3demux gstid3demux.c:155:gst_id3demux_identify_tag:<id3demux0> Found ID3v1 marker, tag_size = 128
INFO typefindfunctions gsttypefindfunctions.c:1267:mp3_type_find_at_offset: audio/mpeg calculated 100 = 100 * 5 / 5 * (10000 - 0) / 10000
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<id3demux0> adding pad 'src'
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link id3demux0:src and decodepad1:proxypad5
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked id3demux0:src and decodepad1:proxypad5, successful
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad audio-sink:sink
WARN alsa pcm_hw.c:1557:snd_pcm_hw_open: alsalib error: open '/dev/snd/pcmC1D0p' failed (-16): Device or resource busy
WARN alsa gstalsasink.c:689:gst_alsasink_open:<alsasink0> error: Could not open audio device for playback. Device is being used by another application.
WARN alsa gstalsasink.c:689:gst_alsasink_open:<alsasink0> error: Device 'default' is busy
INFO GST_ERROR_SYSTEM gstelement.c:1964:gst_element_message_full:<alsasink0> posting message: Could not open audio device for playback. Device is being used by another application.
INFO GST_ERROR_SYSTEM gstelement.c:1987:gst_element_message_full:<alsasink0> posted error message: Could not open audio device for playback. Device is being used by another application.
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<alsasink0> have FAILURE change_state return
INFO GST_STATES gstelement.c:2335:gst_element_abort_state:<alsasink0> aborting state from NULL to READY
INFO GST_STATES gstbin.c:2542:gst_bin_change_state_func:<bin0> child 'alsasink0' failed to go to state 2(READY)
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<bin0> have FAILURE change_state return
INFO GST_STATES gstbin.c:2542:gst_bin_change_state_func:<outputs> child 'bin0' failed to go to state 2(READY)
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<outputs> have FAILURE change_state return
INFO GST_STATES gstbin.c:2542:gst_bin_change_state_func:<audio-sink> child 'outputs' failed to go to state 2(READY)
INFO GST_STATES gstelement.c:2768:gst_element_change_state:<audio-sink> have FAILURE change_state return
INFO GST_ELEMENT_PADS gstpad.c:1750:gst_pad_unlink: unlinking id3demux0:src(0x27d3bf8) and decodepad1:proxypad5(0x27c6438)
INFO GST_ELEMENT_PADS gstpad.c:1795:gst_pad_unlink: unlinked id3demux0:src and decodepad1:proxypad5
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link id3demux0:src and decodepad1:proxypad5
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked id3demux0:src and decodepad1:proxypad5, successful
INFO GST_ELEMENT_PADS gstpad.c:1750:gst_pad_unlink: unlinking id3demux0:src(0x27d3bf8) and decodepad1:proxypad5(0x27c6438)
INFO GST_ELEMENT_PADS gstpad.c:1795:gst_pad_unlink: unlinked id3demux0:src and decodepad1:proxypad5
INFO GST_PLUGIN_LOADING gstplugin.c:859:gst_plugin_load_file: plugin "/usr/lib/arm-linux-gnueabihf/gstreamer-0.10/libgstaudioparsers.so" loaded
INFO GST_ELEMENT_FACTORY gstelementfactory.c:376:gst_element_factory_create: creating element "mpegaudioparse"
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<GstBaseParse@0x23927b0> adding pad 'sink'
INFO GST_ELEMENT_PADS gstelement.c:728:gst_element_add_pad:<GstBaseParse@0x23927b0> adding pad 'src'
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link id3demux0:src and mpegaudioparse0:sink
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked id3demux0:src and mpegaudioparse0:sink, successful
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<mpegaudioparse0> completed state change to READY
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<mpegaudioparse0> notifying about state-changed NULL to READY (VOID_PENDING pending)
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad mpegaudioparse0:src
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link mpegaudioparse0:src and decodepad2:proxypad6
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked mpegaudioparse0:src and decodepad2:proxypad6, successful
INFO GST_ELEMENT_PADS gstpad.c:1750:gst_pad_unlink: unlinking mpegaudioparse0:src(0x27d3d88) and decodepad2:proxypad6(0x27c6508)
INFO GST_ELEMENT_PADS gstpad.c:1795:gst_pad_unlink: unlinked mpegaudioparse0:src and decodepad2:proxypad6
INFO GST_PLUGIN_LOADING gstplugin.c:859:gst_plugin_load_file: plugin "/usr/lib/arm-linux-gnueabihf/gstreamer-0.10/libgstcoreindexers.so" loaded
INFO filesrc gstfilesrc.c:969:gst_file_src_start:<source> opening file /music/Dropbox/Falco/Falco-One Night in Bangkok.mp3
INFO filesrc gstfilesrc.c:969:gst_file_src_start:<source> opening file /music/Dropbox/Falco/Falco-One Night in Bangkok.mp3
INFO GST_EVENT gstevent.c:600:gst_event_new_new_segment_full: creating newsegment update 0, rate 1.000000, format GST_FORMAT_TIME, start 0:00:00.000000000, stop 99:99:99.999999999, position 0:00:00.000000000
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<mpegaudioparse0> completed state change to PAUSED
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<mpegaudioparse0> notifying about state-changed READY to PAUSED (VOID_PENDING pending)
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<id3demux0> completed state change to PAUSED
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<id3demux0> notifying about state-changed READY to PAUSED (VOID_PENDING pending)
INFO GST_STATES gstelement.c:2460:gst_element_continue_state:<typefind> completed state change to PAUSED
INFO GST_STATES gstelement.c:2365:_priv_gst_element_state_changed:<typefind> notifying about state-changed READY to PAUSED (VOID_PENDING pending)
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<decodebin20> child 'typefind' changed state to 3(PAUSED) successfully
INFO GST_STATES gstbin.c:2237:gst_bin_element_set_state:<mpegaudioparse0> skipping transition from PAUSED to PAUSED, since bin pending is PAUSED : last change state return follows
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<decodebin20> child 'mpegaudioparse0' changed state to 3(PAUSED) successfully
INFO GST_STATES gstbin.c:2237:gst_bin_element_set_state:<id3demux0> skipping transition from PAUSED to PAUSED, since bin pending is PAUSED : last change state return follows
INFO GST_PADS gstpad.c:1978:gst_pad_link_prepare: trying to link mpegaudioparse0:src and decodepad3:proxypad7
INFO GST_PADS gstpad.c:2161:gst_pad_link_full: linked mpegaudioparse0:src and decodepad3:proxypad7, successful
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<decodebin20> child 'id3demux0' changed state to 3(PAUSED) successfully
INFO GST_STATES gstbin.c:2237:gst_bin_element_set_state:<typefind> skipping transition from PAUSED to PAUSED, since bin pending is PAUSED : last change state return follows
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<decodebin20> child 'typefind' changed state to 3(PAUSED) successfully
DEBUG [2500:MainThread] mopidy.audio.actor
Audio event: tags_changed(tags=['comment', 'artist', 'private-id3v2-frame', 'genre', 'title', 'extended-comment', 'container-format'])
DEBUG [2500:MainThread] mopidy.listener
Sending tags_changed to AudioListener: {'tags': ['comment', 'artist', 'private-id3v2-frame', 'genre', 'title', 'extended-comment', 'container-format']}0:11:44.768899313 2500 0x239d720 INFO GST_STATES gstbin.c:2237:gst_bin_element_set_state:<mpegaudioparse0> skipping transition from PAUSED to PAUSED, since bin pending is PAUSED : last change state return follows
INFO GST_STATES gstbin.c:2526:gst_bin_change_state_func:<decodebin20> child 'mpegaudioparse0' changed state to 3(PAUSED) successfully
INFO GST_ELEMENT_PADS gstelement.c:975:gst_element_get_static_pad: found pad audio-sink:sink
WARN alsa pcm_hw.c:1557:snd_pcm_hw_open: alsalib error: open '/dev/snd/pcmC1D0p' failed (-16): Device or resource busy
WARN alsa gstalsasink.c:689:gst_alsasink_open:<alsasink0> error: Could not open audio device for playback. Device is being used by another application.
The key lines being:
WARN alsa pcm_hw.c:1557:snd_pcm_hw_open: alsalib error: open '/dev/snd/pcmC1D0p' failed (-16): Device or resource busy
WARN alsa gstalsasink.c:689:gst_alsasink_open:<alsasink0> error: Could not open audio device for playback. Device is being used by another application.
WARN alsa gstalsasink.c:689:gst_alsasink_open:<alsasink0> error: Device 'default' is busy
INFO GST_ERROR_SYSTEM gstelement.c:1964:gst_element_message_full:<alsasink0> posting message: Could not open audio device for playback. Device is being used by another application.
I have no idea what else would be using the audio device.
Not sure where to go from here…