Bump with some extra info.
I found a more recent version of lame, installed it, exported the riff. There was less bubbly, but its still there.
I did however find an audio converter and installed GStreamer-lame (EDIT: since I use Ubuntu. Im pretty sure the same idea would work in windows, since I had the same problem with lame when my laptop ran windows.). I converted the Ogg file above using it and there doesn't seem to be any bubble sound at all:
http://www.soundclick.com/bands/page...songID=8032088
The original sample is still up to compare.
From this I can conclude only one thing.
Audacity+LameEnc = bubbly sound. I do realize my laptop my be a factor, and thats why I was hoping to have someone with a different computer using Audacity to confirm or deny whether its just my laptop or not.