I just got a brand new 1g from apple and for some reason I cannot change the volume when listening to music or playing on youtube. The slider would move and everything but the volume would still be the same going through the headphones, on loud
Is the device used, new or refurbished (you said new from Apple, but they don't make that style anymore, only refurbished editions)? If you don't mind, you could restore and see if that erases the problem.