So I have had my 32GB for a few weeks now and have noticed that my speaker is really distorted when I turn up the volume to max on the external speaker. I thought it was just my iPod because listening to my friends 2G touch it sounded nothing like this when turned up all the way. Well i went into the Apple Store to try and get an exchange and when I talked to the genius guy at the bar he told me that he could definitely hear the distortion and then we went to go see if it was like that on all the Touches or just mine. So after listening to a few 32's they all sounded like this when playing the same song. Then I told him that I was listening to one in the store that didn't sound like that, so we went over to the one I was referring to and listened to it, and lo and behold it sounded crispy clear. No distortion at full audio, then he told me the bad news, we looked at the back and it was an 8GB 3rd Gen Touch. After listening to a few of both models we realized that it was a problem specific to 32GB models. Please note that this was with no EQ and sound check off. I was wondering, to those with a 3rd Gen iPod, could you please list what model you have and if you have quality issues with distortion when playing at full audio on the external speaker.