Cyclical Redundancy Check, or CRC, is an algorithm for making sure that data gets transferred correctly from one device to another. Whether over a network, or between types of media, or even in RAM.
The error means (in theory), you've got a bad section of hard disk somewhere.
The fact that the MPG file plays fine isn't important because streaming audio and video formats are supposed to tolerate data errors. It could just be one byte of data that's wrong, and you wouldn't see or hear that on playback.