Well I just plugged my Empeg in and seek is still frozen. I've tried switching playlists, syncing, changing tracks, etc.

Most of my tracks are at 128kbps CBR. There are some 192 VBR's around, and some miscellaneous test encodes as well. None of them gets my seek tool running, so I think it's more state related than encoding specific. It seemed to be working pretty well towards the end of my 2.0b7 days.