Hi,
If the initialisation problem still exists, it is most probably due to SdFat library. Is the SdFat library you are using older version or the one downloaded from
here->extras folder? SdFat library used in MP3 library is the latest version, which supports the reading of long file names. You will have to place this new SdFat library folder into Arduino libraries directory. If you have the older version, you will have to delete it(or make backup somewhere) and replace it with latest version.
Do check the link
here and search for How to Install and Let's give it a Test section, to see if you are missing anything else.
If none of the solutions above works, you can try updating your Arduino IDE version to 1.6.5. However do backup your additional libraries you have installed before you do so.
Cheers!