So Lets Shaft Our Farmers.....
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For more on marking an answer as the "Best Answer", please visit our FAQ.Your USB 2.0 is backwards compatible and can cope with your USB 1 device. (It does not work the other way though). Think of the computer as the host and external device as the visitor. If the visitor is more demanding than the host then there is no room at the hotel good enough, however if the host has more facilities that the visitor could possibly want then they will surely be accommodated.
The transfer speed will be the maximum that the MP3 external device can handle or at which it is designed to operate.