Hello,
I just experienced the same issue like others: the ipod nano 7th will pause/stop while playing music when connected to an auxiliary device.
I read all the post reply's and I found I try with every single solution an d the only one that worked for me is lowering the volume.
When I connected the ipod I raise the volume to the top, then after a while -sometimes 10 minutes sometimes 20 minutes, anytime the ipod suddenly stop playing. I believe is something related to software because when I turn up the maximum volume and the lower one time de volume then will never stop again, in other words, just don't have the ipod working to the maximum volume when using a external speakers.
By the way, I have the firmware 1.0.2, I tried in several speakers, cables and every single time the ipod stop playing when I had maximum volume, however, when I lower it with just one step then it didn't stop, I don't know why this "fix" work, but for me it does, if someone know why please explain it here.
Does somebody knows if I update to version 1.0.3 the problem will go away? I am very disappointed with this product, I'll stay away from other crApple products, this was my first and last purchase, I can't believe that this cost me almost twice than other products and I have to deal with this kind of problems.
I also noted other "defects" with the ipod, when you add lyrics for example the viewing time is too little and the text very small, if you are reading those when playing on ipod it only stay visible for about 10 seconds, after that the screen returns automatically to the play screen, too bad I can't see it unless I have the finger touching the screen constantly to prevent to go away.
Another problem is that if you want to hear the music with the album option every time a whole album completes the song it will pause automatically, it won't continue to the next folder, very annoying to have to press the pause/stop button so the ipod continue to play.
Well, thanks for reading, please if someone have experienced any of this issues and have a solution please post it.