Hmm.. see if you can bypass it with a different region firmware? (Europe --> North America)
I know many did that with Cowon players and it gets rid of the volume limit.
Just wondering, (because I'm in Canada and never heard what the max volume...) how bad is the volume limit?
Although it may frustrate people, I honestly think it's a pretty good idea (the volume regulation) considering I've seen tons of people blaring their portable headphones on the bus due to poor isolation. Ear-drums be damned.
And, thanks for sharing your discovery, sorry I can't contribute to your discussion.