Just upgraded to the iPhone OS 3.0 on my 1st gen iPod Touch and when I turn the volume up whilst it's in the iPod Hi-Fi, the volume dips when I've finished turning it up... When I push the volume up again the volume slider on the iPod touch then moves down to where it dipped. Sorry, it's quite hard to explain! Basically, when I turn the volume up to 50%, the sound dips to 25%.... the slider still shows 50% until I press the volume up button and it would move the slider to 25%. (If I wanted to play my music at 50% I would have to turn it up to 75% and wait for it to dip to 50%!) I have reset the iPod touch and restored it but the problem still exists. OS 1.0 and 2.0 didn't have this problem. Does this happen to anyone else? Is there a solution? Thanks!