Not sure what else to try
Actually I found something else to try. I used a different audio file. One that I had laying around but that was about 12 minutes long. This file has not been through Audacity. So, I created a new sequence and played the file. No issues. There were no jumps at any point in the audio. I then took that MP3 file, opened it in Audacity and then exported it. Copied the exported file over the one that my sequence was using and bam, it starts jumping. I tried a couple of different bitrates (all CBR of course) but it didn't make a difference. So, there seems to be an issue with the MP3 encoder that I'm using with Audacity. I'm using LAME 3.99.3.
I'm going to attach the test MP3 file I was using. If someone can just verify what I'm seeing I'd appreciate it.
Just create a new sequence with the MP3 file. Don't set anything else up such as timings, effects, models, etc. Zoom in some on the timeline so that you can see every 2 seconds. Scroll over to about the 8 minute mark and then click on the timeline to start the sequence. It should play smoothly as expected.
Now, take that MP3 file and import it into Audacity. Then turn right around and export it to a MP3. Follow the same steps above for creating the sequence and testing. You should notice that after about a second of it playing that the timing bar jumps about a second.
Thanks in advance to anyone who decides to test this for me.
P.S. The MP3 file is about 27 MB. I'm not sure if it will allow me to attach it. In case it doesn't, it can be downloaded here:
http://incompetech.com/music/royalty-free/mp3-royaltyfree/Perspectives.mp3