Same problem. Echo/reverb only heard on saved podcast playback. Streaming audio/podcast is fine. Phone call sound with external speakers is fine. Same reverb heard with and without earbuds. iphone 3G with OS 3.0.1. I have tried reseting and erasing all. Same problem on recover from backup. I guess if I had the time I would reset and erase, then reinstall just OS 3.01 and retest. Maybe a conflict with one of the apps? Recent apps I've loaded include NPR News, KAYAK, reQall, Racers, and Medscape, but my kids are always loading new game apps.