My server only allowed 64 kbps bitrate file but my music are 192 kbps MP3. Uploading it directly sounds awful. So, I tried to convert it first to 64 kbps aac. The converted file sounds decent.  Is it the right thing to do? Or I should just convert it to 192 kbps aac then let the server handle the lowering?

Also is it okay if I let the 'Mount Points > Audio Encoder' to MP3? Sorry for the noob question. I'm really a newbie. I don't even know how to put a silence gap between songs.

as a musician I'm always looking for the best quality available so I'd do this, I'd convert 1 file myself and I'd let the server do the same file and compare them to see which sounds better.

I run my own dedicated servers so I don't have to deal with issues such as yours and I've honestly never heard of such a service unless you're with a free service which has huge restrictions.