Yes, My sister is having the same problem (always returning to the first song after powerdown) I am looking for updates to resolve this problem and the only thing preventing me from buying this MP3. Although unadvertised, this MP3 player also works as a flash drive with an expandable memory (although the SD card cannot be played from, it can be used for stroage)which is really cool. I am still shopping but I think she'll keep it.
My ILO mp3 player always goes back to track 1 after a power off/on. I set it up in menu to resume from current track but it always goes back to the first track. Anyone else having this problem?

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