For the first two months, I had the proximity issue. Although mine was a little different. While touched to my face, it would go blank. But, if I needed to put in numbers, it wouldn't work and just stay blank. Then, after a few minutes, it would come on and be fine. Jeez was that annoying. For some reason, I no longer have the issue. Also, I have not upgraded to 4.1 (mine is still on 4.0.1). Once in a while, when I press the ipod icon, it will show no songs (sometimes no content). However, my memory still shows the same amount as when the songs do show? If I'm at home, I can sync it and it shows all content. Unfortunately, when I'm away from a syncable computer, it happens more often.