It's definately firmware, a clix2 messing up like that is very....different. SO yea its probably firmware, put that post in
Desired Features and Common Complaints
Im sure the iriver crews that make the firmware cruise thru these forums, being one of the more "official" forums for iriver u10/clix series. So if you put it out for them to see hopfaully they will have it fixed with next firmware.