I actually found a better way to make it work.
1) Plug the headphones out if they're in
2) Exit out to the main menu screen
3) Plug the headphones back in
4) Press the volume up/down buttons on the iPad a couple of times
5) Press the buttons on the headphones a couple of times
After that everything should work, its not really a fix, but kind of a work around until Apple actually solves this issue.
Hope this helps