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Is there any sound file format that sounds better then .mod ?

Yes. The one that comes to mind first is "Red Book" audio. That is what they write on standard audio CDs.

The question is "What do you want to do with the file. I think .mod was useful with some older computer music generation software.
 
.mod can sound pretty good these days - it all depends on the samples you use. Lately, MOD trackers started to support VSTi/AU units and plug-ins too, so it all comes down to what you want to do with the files.
 
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