I've seen some references to this before, I was using the iPod just for playback and didn't notice this until yesterday when I was thoroughly excited with the coverflow view (sad but true) playing back a variety of stuff on the iTunes 7 updated Mini in my living room. Hearing this clipping suddenly crop up through a five-figure hi-fi setup is, shall I say, a bit ******* disconcerting. I reached for the pause rather quickly. Woss going on with iTunes? Is it boosting the output level in some way? I can engage the preamp in iTunes and reduce the output level, which works to eliminate the digital clipping. But what's changed?