/EXCLUDE uses exact string matching, not pattern matching. That is: No wildcards, please. Your list should hence contain
.mp3
.wma
.wav
.avi
.mpg
~
.tmp
Thumbs.db
\temp\
\System Volume Information\
\RECYCLER\
\Virtual Machines Garage\
\Virtual Machines Microsoft\
\Virtual Machines VMWARE\
But that is inprecise, in particular with the tilde - it will exclude names like a~b also.