Yep I get the same reversed-up-down controls bug as well.
Also the old bug (although I guess I wouldn't really call it a bug, more of a missing feature) of stopping after after a song has played rather than moving on to the next track. Makes it hard to listen to albums.
AVI's work fine for me however. One file which didn't work for me also didn't work on the PS2 SMS media player, so I figure its something wrong with that particular AVI file.
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