ATRAC Torture Test?

Matthias in Germany reports:

I have a Sharp MD MS702H portable MiniDisc recorder and I recognized that the ATRAC-System isn't able to compress this waveform without errors. There are "click"-sounds on the right channel of the MiniDisc recording. I tried it using digital and analog - both times these errors occurred (and also on other MD-Systems). Now I am very much interested in other's reaction to this problem.

The wave file: Track03.wav.

What they look like:

Results with an MZ-R50, recording analog (Left and Right channels):

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