I had a strange thing happen on an iPod Touch 16 Gig Gen2 running 3.1.2:
I tried to restore to an earlier firmware version (specifically 2.2.1) to get the mic working again... failed... so I did a restore to 3.1.2.
The mic worked until... until it stopped. Maybe because it went to "sleep" or i powered it off... but when I powered it back on, the dreaded "not supported" message came up.
But then, after putting it down in disgust, I unplugged the iVoice III, and plugged it back in: the blue light came on immediately. I pressed the "Home" button, unlocked the iPod, went to the Voice Recorder, and recorded a message... then switched to Skype... and before Skype was loaded, the "not supported" message appeared, and the blue light went off.
If Apple doesn't want people to jailbreak their iPods, they should stop giving us incentives to do it.
The hardware is what it is: it worked once: then Apple changed something, and now it doesn't work. They can't go blaming Macally for this. Did they change their API or other specification? When hardware works until an official OS Update is released, then the hardware stops working, that's the OS Vendors fault.
Apple isn't so good at dealing with third party hardware. Kind of reminds me of Vista... that's it! OS 3.x is the iPod equivalent of Windows Vista! Hardware incompatibilities! Let's see Justin Long talk his way out of this one.