iPhone 5 Audio on Movies and music is distorted

I have a new iphone 5 and noticed a great deal of distortion when playing back music and videos. I have tried the EQ settings (all of them) with no improvement. All my videos and music are apple lossless (music) and videos are at least CD quality audio. I have had absolutely no issue with my iPod touch, iPad, and iPhone 4 before this new phone. I even did a re-install, reset, etc...

My ear monitors are Ultimate Ears Monitor 7's.

Did Apple change the audio codec or something ? Will re-converting in Handbrake help?

One of my test Movie files is the U2 Concert From the Rose Bowl which was purchased from Itunes which is now distorted when listening to with volume slightly elevated. This is the same as other movies purchased and converted. All of my conversions always are at high quality.

Is anyone else experiencing the change in audio since changing over to the new phone?

on a temp fix ...

I did purchase two apps that seem to help from the App store.

For the music is Audioforge equalizer

and for the Movies, CineXplayer (which I am very happy with)

If anyone can add to this, please do ....

Thanks